Inflation in the UK forces households to cut on luxury spending
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Data from Barclays Plc shows that cardholders are cutting their expenditure by half, while 60% of users are reducing their spending on dining out and clothing.
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The grocery section at the UK supermarket ASDA in Leeds, United Kingdom, 19 October 2020. (Reuters)
UK households cut back spending on groceries and dining out in March due to continuous double-digit inflation, as reported by Bloomberg, citing Barclays Plc data.
Barclays indicated that its data shows a 4% increase in consumer spending from last year which is less than half the rate of inflation. This means that the number of goods and services purchased overall has been pushed back since 2022.
The Bank also reports that more than half of its cardholders are minimizing their expenditure on luxury goods, while 60% are reducing their spending on dining out and clothing.
UK wages have been relatively stagnant in comparison to the substantial increases in prices in the country. Inflation was recorded at 10.4% marking the sixth month of continuous double-digit rates.
Supermarket spending rose only 7.8%, much less than the rate of increases in food and nonalcoholic drinks which was recorded at 18% the highest level since 1977.
Barclays revealed that more money was spent on digital content and a 4.3% growth in home improvement and "do it yourself" (DIY) goods.
This indicated that Brits are altering their way of life, investing more money into cost-cutting measures such as home-cooking and DIY projects.
Read more: England's health service braces for catastrophic doctors strike.
