UK Consumers Expect Prices To Jump In New Year
More than half of UK consumers expect prices to rise in the next six months, especially for supermarket food and fuel, a Verdict Retail study has found.
The retail research agency's survey of 2,000 consumers revealed that there has again been a drop in the future consumer sentiment index, falling 6.6% to -32.9, in perceptions of the economy, personal finances, and future retail spending. This outlook is expected to get worse.
October's inflation index, looking at views of anticipated price rises in areas such as fuel, food, and clothing, also took a hit. It dropped 8.7% on September, reaching its lowest point since November 2013.
During October, price rises such as Marmitegate were precipitated by the weak pound, diminished by the uncertainty over Brexit.
Analyst Zoe Mills said that,“Consumer sentiment has taken a significant knock over the last two months and with March 2017 (when the UK government is expected to invoke Article 50) looming ever closer, this index may see little improvement over the coming months."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. To subscribe to ESM: The European Supermarket Magazine, click here.