More than nine out of 10 people saw them living expenses rise over the past month as food, fuel and energy prices continue to rise, pushing inflation to its highest level in four decades.
The number of people cutting food has risen sharply: 41 percent of people cut shopping compared to 8 percent in September, according to a survey by the Office for National Statistics.
About 45 percent of respondents said they cut back on car travel fuel cost dangerously close to 2 pounds per liter.
Half of the adults said they were worried a significant increase in electricity bills, which jumped by £ 700 a year for the average housing after regulator Ofgem raised the price limit last month. Another 40 per cent jump is expected this winter, bringing it to around £ 3,000.
Three-quarters of all adults said they were somewhat concerned or very concerned or somewhat about the rising cost of living.
Respondents spoke about different tactics of managing their budget: six out of 10 people spend less on necessities, and half said they have reduced fuel or energy consumption. Just over one-third (35 percent) said they shop more in search of better value.
Some official data show that these fears have begun to affect shopping habits. Retail sales declined in May as consumers restrained them product costssaid ONS.
Expenditures on food decreased by 1.6 percent, sales in supermarkets fell by 1.5 percent, and in specialty stores such as butchers and bakeries – by 2.2 percent.
ONS also revised its sales growth in April down from a previous estimate of 1.4 percent to an increase of 0.4 percent.
Nicholas Farr, an analyst at Capital Economics, said the drop shows that consumer spending is “softening, not falling”.
“Falling retail sales in May suggest that declining real household incomes as a result of rising inflation are starting to have a slightly stronger impact on consumer spending.”
However, he said, these figures are unlikely to deter the Bank of England from continuing to raise interest rates.
“In any case, we still expect interest rates to rise from 1.25 percent now to 3 percent next year, which is above the 2 percent peak expected by consensus analysts.”
Rishi Sunak said on Wednesday that the government was doing its best to fight rising prices when inflation reached a new 40-year high, rising 9.1 percent in the 12 months to May.
Economists fear that inflation, the rate at which prices are rising, will rise even more in the coming months. The Bank of England estimates it could reach 11 per cent this year.
“We are using all the tools at our disposal to reduce inflation and fight rising prices,” the chancellor said after announcing the figures.
“We can build a stronger economy through an independent monetary policy, a responsible fiscal policy that does not contribute to inflationary pressures, and by increasing our long-term productivity and growth.”
Nine out of 10 people have been affected by rising cost of living as a result of rising prices for fuel, food and energy
Source link Nine out of 10 people have been affected by rising cost of living as a result of rising prices for fuel, food and energy