Almost two-thirds (63%) of people feel under pressure to reduce expenditure in light of rising inflation, a study has claimed.
Research specialist Ipsos MORI found women and families are under the most pressure to cut back on spending in a survey of more than 2,000 current account holders.
56% of female respondents said they were feeling the pinch from rising living costs, while that percentage rose to 60% for those with children.
According to the ONS, inflation as measured by the Consumer Prices Index climbed to 3% in September 2017.
With inflation outpacing wage growth, many homeowners are increasingly feeling the squeeze on household budgets.
In homes where the situation was described as ‘tight’, Ipsos MORI found consumers reduced spending on:
- shopping for leisure (48%)
- socialising or entertainment away from home (46%)
- non-essential groceries (43%).
Quote from Nigel Holland:
“In the unfortunate event that inflation continues to rise, families will be forced to dedicate their income to necessities only, such as groceries, fuel and toiletries. Due to wage growth not corresponding with the growth of inflation, desires and wants are put on hold as the level of income cannot support them.
A way in which families can save their money is by ensuring they gain the best deals and offers possible on their necessary everyday items and reducing waste so that they can get the most out of their money.
Investing is a way in which society can make the most out of inflation. Such investments may include real estate, and stocks and shares, provided these investments rise in value. We at Holland & Company offer advice on profitable investments and how to benefit from doing so.”