British households slashed back spending on groceries and dining out in March as persistent double-digit inflation forced them to tighten their belts.
(Bloomberg) — British households slashed back spending on groceries and dining out in March as persistent double-digit inflation forced them to tighten their belts.
Barclays Plc, which processes credit and debit card transaction, said its data shows consumer spending rose 4% from a year ago last month, less than half the rate of inflation. More than half of people are cutting luxury purchases and one-off treats while six-in-10 are scaling back on restaurants and new clothes.
The figures suggest that the resilience of consumers is fading as wage growth fails to keep pace with soaring prices. Inflation unexpectedly picked up to 10.4% in February, marking a sixth straight month in double digits.
Supermarket spending rose 7.8%, well below the 18% rate of increase in prices of food and non-alcoholic drinks.Â
However, Barclays did see growth in spending on digital content and subscriptions hitting a five-month high. There also was a 4.3% month-on-month boost for shopping on home improvement and do-it-yourself goods.
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