NEWS15 November 2022

UK consumers financially hit by inflation

Cost of Living Europe News Trends UK

UK – More than half of British consumers feel that price inflation has negatively impacted on their finances, with 17% facing serious financial problems, according to research from DVJ Insights.

Cards with inflation figures and a question mark at the centre

The research, which is a follow up to a price study carried out by DVJ Insights in June, found that the majority of people’s budget cuts had come from ordering food and clothing purchases.

In the past four months to November, 48% of consumers had reduced food orders, such as takeaways, and 31% anticipated further cuts to spending in this category.

In terms of groceries, more than half ( 57%) are using savings programmes, purchasing cheaper options ( 52%) and switching retailer ( 56%).

British citizens claimed to be worried, scared and anxious due to the current economic situation, and 18% said they felt like victims of the crisis.

The research is based on a study of 3,337 people across the UK, Germany, the Netherlands, Sweden, Norway and Denmark.

There were differences noted in the nations’ approaches to inflation, with Norwegians and Danes categorised as “pragmatic savers”, whereas the Dutch were viewed as more “leisure activities savers” and in Germany, more consumers were reducing their spending on areas like leisure activities, electronics, sports and gifts.

In the UK, consumers were delaying unnecessary purchases, especially appliances, home improvements, holidays and clothing, with 22% planning to spend less on gifts and sports.

Price inflation has a significant impact on close relationships with partners, family and friends, according to DVJ Insights, with the number of “socially strained” people in the UK up by 10% in the past four months to 21% overall.