New data released by Attest, a consumer research platform, reveals the extent to which Brits are feeling the pinch of inflation.
Nearly 43 per cent of people say inflation is affecting their lives to a high degree, while a further 43.5 per cent say it’s affecting them to a moderate degree (according to data from 1,000 working age consumers taken from 16-17 May 2022). The Inflation sentiment tracker shows that a huge 86.6 per cent of consumers are having to make cutbacks to cope with rising costs, with 24.5 per cent having to reduce their consumption of essentials like food and fuel. Gas and electricity were the items Brits were most worried about paying for in May (48.5 per cent), followed by food (35.5 per cent) and petrol/public transport (31.1 per cent). Only 26.7 per cent said they had no worries about covering the costs of things in May.
The tracker shows increasing pessimism among British consumers, with people less optimistic than they were in April. In the month prior, Brits were feeling an average of 6.1 out of 10 in terms of optimism for the future, but in May, this fell to 4.9 out of 10. Overall happiness is also suffering due to the cost of living crisis. In April, people rated their happiness with life at 6.6 out of 10, but in May, this had decreased to 5.7 out of 10. People’s sense of financial security, meanwhile, sits static at 5 out of 10. Those aged under 40 are more likely to be feeling financially insecure than those aged over 40. People in the 18-24 year old age bracket give the lowest rating for financial security at 4.9/10, while those aged 55-65 give the highest (although this is still only 5.4/10).
Jeremy King, CEO and Founder of Attest, said: “With the energy price cap due to increase in October and the price of food rising all the time, the cost of living crisis looks only set to get worse. This will have very real ramifications for brands of all types, but especially for those in the premium, travel or entertainment sectors. We see that 56.3 per cent of UK consumers are having to cut back on non-essentials like clothes and meals out, while 39.1 per cent of people who were previously in the market for luxury purchases, are now cutting back on them. Meanwhile, a quarter of UK households have less to spend on basics, which means people will be switching to cheaper brands and buying less in general. Brands will need to keep a close eye on their consumers during this belt-tightening period to make sure they can continue to serve them.”