The people of the United Kingdom have reduced their spending on luxuries.
During the cost-of-living crisis, consumers have cut back on spending on things that aren’t necessary.
Consumers in the UK cut back on spending on luxuries and eating out in March, Bloomberg reported on Tuesday, citing data from Barclays. This is because double-digit inflation is still making it hard on family incomes.
After looking at credit and debit card activities, the bank found that more than half of Barclays cardholders cut back on spending on luxury items and one-time treats, while six in ten cut back on eating out and buying new clothes.
According to the lender, consumers spent 4% more last month than they did a year earlier. Spending in stores went up 7.8%, which is much less than the rate at which prices for food and non-alcoholic drinks went up.
In February, inflation for food and drinks that don’t contain alcohol rose to 18%, the highest amount since 1977.
The data shows that British shoppers are changing their shopping habits more and more to save money as the cost of living problem gets worse. As prices rise at the fastest rate in 40 years and wages don’t rise fast enough to keep up, it’s getting harder for people to get by.
In February, inflation rose to 10.4%, which was higher than predicted. This is the sixth straight month that inflation has been in double digits, which puts more pressure on UK households.