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.
Lloyds TSB Bank plc, Lloyds TSB Scotland plc and Bank of Scotland plc (members of Lloyds Banking Group), are authorised and regulated by the Financial Services Authority. FSA authorisation can be checked on the FSA’s Register at: www.fsa.gov.uk/register/home.do. Lloyds TSB Bank plc, Lloyds TSB Scotland plc and Bank of Scotland plc are members of the Financial Services Compensation Scheme and the Financial Ombudsman Service.