Households remain “under real pressure” across the UK with consumer spending on essentials growing at its highest rate in almost two years, according to the Lloyds TSB Spending Power report.
Consumers continued to be squeezed in February, with 46pc of people putting at least three-quarters of their income towards bills and other essentials.
Spending on essentials grew 6pc year on year in February, driven by high utility bills, as water bills increased by 15.9pc and gas and electricity spending went up 10.5pc annually.
Patrick Foley, chief economist at Lloyds TSB, said: “Households remain under real pressure. Any improvement in this situation will depend on lower inflation on essentials as income growth is likely to remain weak in the short term.
“We would expect households to start seeing the benefit of lower inflation in the next few months, assuming oil prices don’t continue to rise sharply, and with an improvement in consumer sentiment and spending.”
No mention of either over priced houses or inflated rent.
We won't have lower inflation it will still be going up!
Edited by interestrateripoff, 19 March 2012 - 10:52 AM.