MOSCOW (Pakistan Point News / Sputnik - 31st December, 2022) Retail sales in the UK have fallen amid a cost of living crisis that forced people to limit their spending even after COVID-19 restrictions were lifted, The Guardian reported on Friday, citing data from Barclaycard company.
Although people made more transactions, up 5% from a year earlier, the amount of purchases was 0.8% lower, the report read. A 33% increase in energy bills forced people to be more careful about their shopping choices, the daily said.
"However, the cost of living squeeze has clearly impacted the retail sector. Consumers have had to rein in spending on purchases like subscriptions and home improvements, as well as reduce their basket sizes in general," Esme Harwood, a director at Barclaycard, was quoted as saying by the newspaper.
The 10% inflation in the UK will likely continue hampering retail growth, although people may find ways to overcome existing difficulties and adjust to the current living conditions, Harwood added.
Food spending went down 0.1% from the last year, even though food price inflation stood at over 16%, the report said. According to Barclaycard, shoppers have become more price-conscious, reduced purchases of non-necessity products and favored unbranded or supermarket-branded versions of popular items, The Guardian said.
The UK, along with other Western countries, has been facing a massive energy crisis and rising inflation as part of the post-pandemic global economic recession. The situation deteriorated further due to the Ukraine crisis as hostilities and Western sanctions against Moscow led to disruptions in supply chains and resulted in a further spike in energy prices worldwide.
In the UK, the rising cost of living has hit millions of households. Around 32 million UK residents, or 60% of the adult population, are struggling to pay their bills, according to the UK Financial Conduct Authority.
