UK INFLATION has been steadily on the increase over the last year, and many people will undoubtedly be starting to see the impact on their wallets, particularly when sluggish wage growth is taken into account. It comes as no surprise then that consumers are becoming more and more concerned, with research from Lloyds Bank revealing that inflation concerns have hit their highest level since January 2014.
The research found that 65 per cent of UK adults surveyed felt negative about current levels of inflation in July, up from 60 per cent in June’s survey and just 41 per cent in July 2016. Confidence in the country’s financial situation has also deteriorated, with those feeling negative up 2 per cent month-on-month in July and 7 per cent over the last 12 months, with the figure now standing at 69 per cent.
At the moment, this isn’t yet filtering through into people’s personal finances, with 64 per cent of those taking part in the survey feeling positive about their own financial situation in July, unchanged from June, and just 3 per cent below the reading in July 2016. A further 79 per cent reported feeling positive about their job security, only 1 per cent down on a monthly basis and an increase of 2 per cent year-on-year.
Robin Bulloch, managing director of Lloyds Bank, comments:
“Despite a slight slowdown in the rate of essential spending growth over the summer, concerns around inflation have continued to build, which has an impact on future intentions. With the rate of savings already at a record low, significantly fewer people now expect to be putting more money aside in six months’ time. While the pressure on disposable income makes this understandable, it does mean consumers are less able to absorb any further squeeze on their finances.”