Brits get spending power boost from cheaper essential goods

Chris Papadopoullos
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Figures from Lloyds Bank show UK consumers’ spending power is at a record high
CONSUMERS have more money to spend thanks to lower inflation, improving personal finances and better job security, new figures from Lloyds Bank reveal today.

“With the combination of a stead­ily improving jobs market and lower prices for essentials, feeding through to household budgets, a positive mood among consumers is being maintained. As a result, the UK’s economic prospects continue to look bright for 2015, even if political events are set to introduce a little more uncertainty,” said Patrick Foley, chief economist at Lloyds Bank.

The overall spending power index score – which takes into account a range of factors such as prices, incomes and job security – maintained a record high level of 154 in February.

It was buoyed by a third consecutive month of falling prices for essentials, largely driven by a 7.3 per cent year-on-year drop in gas and electricity prices. Fuel prices also helped with a 9.7 per cent year-on-year fall.