Nearly 75 per cent of consumers think prices have risen in the last year and expect prices to rise further in the coming months.
New data from GfK‘s Inflation Watch, which looked at consumers’ views of price fluctuations over the past 12 months, reveal that the number of people reporting price hikes is rising dramatically.
Compared to January 2016, 22 per cent more people feel that prices have risen, alongside 19 per cent more people who are afraid of imminent inflation.
Furthermore, 34 per cent of those surveyed said they expect inflation to happen more rapidly this year, compared to just 11 per cent thinking this in 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,” GfK head of market dynamics Joe Staton said.
“Consumers have already been hit by higher food and energy prices because the weakness of sterling is raising prices and reducing consumer spending power.
“This has affected a range of typical purchases from Marmite to Majorca summer holidays. A third (34 per cent) 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?”