NEWS14 February 2017

Consumers anticipate accelerated inflation

News Trends UK

UK – Three quarters ( 74%) of consumers believe prices have risen over the last 12 months, according to a new survey. 

Cards with inflation figures and a question mark at the centre

This figure, from GfK’s GB Inflation Watch survey, is 22 percentage points higher than a year ago. The percentage who expect price rises over the next 12 months (also 74%), represents an increase of 19 percentage points. 

Over a third ( 34%) of British consumers expect future consumer price increases to be more rapid than over the last 12 months. This is three times as many as the 11% who held the same belief in January 2016. 

“The fall in the value of the Pound since the Brexit vote has fuelled speculation among both business leaders and consumers alike that we will see accelerated price inflation filter through to the High Street this year," said Joe Staton, head of market dynamics at GfK. "Consumers have already been hit by higher food and energy prices because the weakness of sterling is raising prices and reducing consumer spending power.

"A third ( 34%) of GB shoppers anticipate rapid rises across a wider range of goods will impact spending, making us all even savvier in comparing prices for every day purchase decisions. This is good news for brands that represent value-for-money in consumers’ hearts, wallets and minds, but does it mean tough times ahead for everyone else?”