Nearly three out of four UK consumers (74%) surveyed in January 2017 think prices have risen over the past 12 months. This is 22 percentage points higher than a year ago.
The same percentage (74%) expect prices to rise in the coming 12 months, with this figure up 19 percentage points compared to January 2016. More than one in three people surveyed (34%) said they expect future consumer price increases will happen “more rapidly” than the past 12 months. This is more than three times as many as the 11% that thought this in January 2016.
Joe Staton, Head of Market Dynamics at GfK, says:
“The fall in the value of the Pound since the Brexit vote has fuelled speculation among both business leaders and consumers alike that we will see accelerated price inflation filter through to the High Street this year. Consumers have already been hit by higher food and energy prices because the weakness of sterling is raising prices and reducing consumer spending power.
This has affected a range of typical purchases from Marmite to Majorca summer holidays. A third (34%) of GB shoppers anticipate rapid rises across a wider range of goods will impact spending, making us all even savvier in comparing prices for every day purchase decisions. This is good news for brands that represent value-for-money in consumers’ hearts, wallets and minds, but does it mean tough times ahead for everyone else?”
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