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Two-thirds poised to cut food spending

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Market inflation continues to erode household disposable income, according to the latest poll from Conlumino.

Almost two-thirds (65.4 per cent) of consumers expect the price of supermarket food to rise over the next six months and just 3.5 per cent think prices will fall.

The poll, which quizzed over 2,000 consumers, shows that general confidence has grown over the last 12 months but indications of a sustained recovery are likely to be premature and are being held back by fixed views on the future prospects for inflation.

Conlumino consultant, David Alexander, comments: “The slight dip will come as a blow to retailers. Although consumers are now more positive about the future, their household budgets remain under considerable pressure – mostly thanks to inflation which continues to outstrip wage growth.

“What this means is that while many consumers see the green shoots of recovery they are not yet seeing the benefits in their own wallets or purses.”

46 per cent are currently cutting back on treats and luxuries and 40 per cent are visiting shops less in order to save, though, encouragingly for retailers, the latter figure is down from 42.6 per cent in May.

There is a similarly pessimistic view on petrol and diesel prices; with 71.7 per cent thinking they will rise over the next six months.Just four per cent think they will fall.

Published on Thursday 18 July by Editorial Assistant

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