Consumers feel biggest squeeze in spendingpower in over a year
Consumers’ spending power continued to deteriorate in March, and after inflation fell 1.1% from a year earlier – its lowest level since February 2011. This equates to £113 less a year to spend on non-essential items.
At 6.2% spending on essentials is rising at its fastest rate since the Index began.
Income growth has slowed to its weakest rate for over a year to 2.4% from 12 months ago.
Nearly three quarters of consumers (73%) have noticed an increase in the cost of essentials and everyday spending.
There was a significant rise in spending on vehicle fuel in March compared with February (12%) as people reacted to the threat of a fuel distribution strike towards the end of the month. However, this increased essential spending by only 0.2%.
64% of people believe they are spending more on petrol and diesel compared to a year earlier.
