Spending growth falls to 10-month low as inflation spikes

 
Helen Cahill
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Growth in consumer spending has fallen to a 10-month low as the nation tightens its belt due to inflationary pressures.

According to figures fro Barclaycard, consumer spending growth dipped to 2.8 per cent in May, as inflation hit its highest level for four years.

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Consumers tried to save on household goods and clothes, with spending in both of these categories falling 2.9 per cent year-on-year.

However, it appears the UK still wants to go out and spend money in restaurants and cinemas; spend on these areas experienced an uptick of 11.5 per cent and 11.7 per cent respectively year-on-year last month.

The figures come after data showed that high street spending fell back in May, and that fashion retailers were some of the hardest hit by the decline.

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Food inflation is now outpacing the overall rate of inflation (which stands at 2.7 per cent), meaning that consumers are having to cut down on discretionary goods.

Paul Lockstone, managing director at Barclaycard, said: "Consumer spending growth was subdued last month as shoppers paused for breath after an Easter bounce in April. With consumer price inflation running at its highest rate since 2013, it's no surprise that more of us are starting to 'feel the squeeze' of inflation and slower wage growth, perhaps prompting small changes to our spending patterns."

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