Rising food bills force families to cut back

Higher prices are forcing families to spend more on food and cut back elsewhere, as imported inflation starts to bite, the British Retail Consortium said. Families chopped back their spending on clothing, jewellery, household appliances, toys and baby equipment, and health and beauty products. But they spent more on home accessories, furniture and food.

HIGHER prices are forcing British families to spend more on food and cut back elsewhere, as imported inflation starts to bite.

Spending on food increased by 1.4pc in the three months to July compared with the same period a year ago, but expenditure on other items fell by 0.4pc, the British Retail Consortium said.

Families chopped back their spending on clothing, jewellery and watches, household appliances, toys and baby equipment, and health and beauty products. But they increased spending on home accessories, furniture and food.

Meanwhile, a survey by Barclaycard indicated that while consumer spending rose 3.5pc on the year, it was largely driven by higher food prices rather than confidence in the economy. Only 28pc feel confident in the economy, down from 34pc a year ago.

The survey found 43pc of customers were responding to inflation, with more than half of those consumers shopping more at discount stores.

However, the pressure is not overwhelming and households can find cash for treats when they want to.

Barclaycard’s figures showed a 24pc rise in spending on cinema tickets and events, which the bank put down to demand for the film Dunkirk and music tours from Ed Sheeran and The Killers.

Ed Sheeran’s tour helped drive a 24pc rise in spending on leisure events