Decreased inflation 'a bit of a boon to consumers'
Many people may experience the benefit of the falling cost of living and could have more money to spend, according to an economist at the Centre for Economics and Business Research.
Decreased inflation 'a bit of a boon to consumers'”
However, consumer spending may not increase despite the fall in inflation, economist Charles Davis said.
In related consumer-spending news, UK payments association Apacs states that consumers spent £126.30 billion last year on credit cards and the total number of credit card purchases reached two billion.
The Office of National Statistics (ONS) has said that this year people may have to spend less money on groceries, particularly fruit, vegetables and meat as the price of these foods has decreased.
Consumers are also paying less for hotel rooms, computer games and restaurants, the ONS stated.
"The signs are there that the cost of living is starting to drop back which will be a bit of a boon to consumers. If you have a more steady income, like a civil servant for example, you will tend to benefit from the falling cost of living which is a boost to the spending power of the average UK household," Mr Davis said.
Written by ©
