Consumers across the UK are fearing the worst when it comes to inflation brought about by Brexit, as eighty per cent were found to be concerned over price rises on household essentials.
New data from Mintel’s 27th annual British Lifestyles report revealed that 83 per cent of Britons fear price hikes in goods and services, and a further 59 per cent state they fear grocery price rises the most.
Fourty-six per cent of those surveyed state they think Brexit will have a negative impact on the cost of living, a figure which has remained unchanged since a poll taken immediately after the vote.
The amount of people who thought it would negatively impact the UK economy fell by eight per cent since the vote to 31 per cent.
The 46% who fear that Brexit will have a negative impact on the cost of living was unchanged from when the same question was asked in July last year in the immediate aftermath of the vote to quit the EU.
However, the proportion that believe Brexit will hit the UK’s economic growth fell from 39% last year to 31%.
According to the study, the grocery price war which has been raging over the last few years means consumers have gotten used to low food prices, making it more difficult to adjust when inflation hits supermarket shelves.
Despite growing inflation and economic uncertainty, Mintel reports that consumer spend last year grew 3.7 per cent to £1.2 trillion. Although spend grew across almost all 17 sectors, spend was lower on fast moving consumer goods reflecting the grocery price war.
“Following the UK’s vote to leave the EU, there has been a great deal of discussion about how it will impact the price of goods and services,” Mintel senior consumer lifestyles analyst Jack Duckett said.
”Mintel research underlines particular concern about the rising cost of in-home food, and inflation is undoubtedly going to squeeze household budgets.
”However, broader consumer confidence is still relatively strong. Despite rising prices, most people still expect their finances to hold up well over the next year.
”It’s the bigger picture issues that the UK faces, such as the NHS and the economy, that are the main concern, rather than people’s own finances.”