Rising household bills prompt shoppers to rein in spending

SURGING inflation is “coming home to roost”, slamming the brakes on shopping as families face higher bills at home and higher prices on the supermarket shelves, retailers and analysts have warned.

Retail sales last month were down 0.3pc compared with April 2021, according to the British Retail Consortium, with pressure on groceries spending and a slump in spending on expensive items.

It threatens to derail the economic recovery as businesses are reliant on household consumption as a key driver of growth, but inflation is now imperilling that rebound from the pandemic.

At the same time figures from

Barclaycard show families tried to cut back in supermarkets and fuel, given the sharp rises in petrol and diesel prices, with almost two thirds of those surveyed saying they are looking for ways to save on essentials, and more than half holding off buying luxuries in favour of own-brand products.

Helen Dickinson, chief executive of the BRC, said families are spending more on clothes and garden products to make the most of the good weather, but are cutting back on bigger purchases.

“Big ticket items have been hit hardest, as consumers reined in spending on furniture, electricals and other homeware, compounded by delays on goods coming from China,” she said.

“Further headwinds are incoming, such as global food prices, which rose 13pc between March and April. Retailers will do all they can to mitigate the effects of these costs rises but unfortunately they cannot absorb them all.”

Inflation hit 7pc in March and the Bank of England estimates it could hit 10pc or more this autumn.

Paul Martin, at KPMG, said “the costof-living crisis came home to roost” last month. “With interest rates and inflation rising … the squeeze on disposable household income is starting to have an impact on the high street,” he said.

Families are prepared to splash out on some luxuries, however. Spending at travel agencies is within 4pc of pre-covid levels, Barclaycard found, with airline ticket sales within 10pc of 2019’s levels.