7 in 10 Consumers Cutting Back on Everyday Expenses

A survey by investment managers Brewin Dolphin has found that 70% of consumers are cutting back on everyday essentials – as inflation is poised to rise even further.

Food, petrol and energy bills – inflation is hitting UK consumers hard. And as more people’s wages remain static, growing numbers of us are cutting back on the things we buy every day.

A survey by London-based investment managers Brewin Dolphin has found that 70% of consumers are cutting back and 74% don’t expect their income to rise at the same pace as inflation over the next year.

Unfortunately, they may be right. The minutes from the latest meeting of the Bank of England’s Monetary Policy Committee (MPC) have been published this week – and the outlook for inflation isn’t good.

Thanks to rising energy and food bills, the MPC expects inflation as measured by the Consumer Prices Index (CPI) to rise.

According to the minutes, “In the light of recent developments in utility and food prices, the peak in inflation was likely to be a little higher and come sooner than the Committee had previously expected.”

Moneyhighstreet comments: “With inflation outpacing wage rises, it’s important for consumers to find savings on their everyday expenses.

“But inflation isn’t bad news for everyone. When wages keep pace with inflation, borrowers win as the real value of their debts goes down over time. Low interest rates also mean better prices on loans and mortgages.

“If you’re feeling the squeeze, one of your best chances to save money is to reduce your energy bills. You can do this by comparing energy tariffs online at independent comparison sites like Moneysupermarket.com. The new Home Energy Plan from British Gas also gives households a new opportunity to save by subsidising green energy additions to their home.”