Household spending on essentials up 6%

woman with empty purse

woman with empty purseDo you find that your wages don't stretch quite as far as they used to?

Many of us have no doubt experienced a sinking feeling after seeing that the prices of everyday essentials have risen yet again.

And now new figures from Lloyds TSB suggest that household budgets are still under pressure, as the amount we spend on essential goods has gone up by the largest amount in nearly two years.

The bank's Spending Power report showed that 46% of consumers were forced to put three quarters of their income or more towards essential costs and bills last month.

In February, spending on essentials went up by 6% in annualised terms, with utility bill rises taking their toll.

Patrick Foley, chief economist at the organisation, said "real pressure" continues to face the UK's households.

He added: "Any improvement in this situation will depend on lower inflation on essentials as income growth is likely to remain weak in the short term.

"We would expect households to start seeing the benefit of lower inflation in the next few months, assuming oil prices don't continue to rise sharply, and with an improvement in consumer sentiment and spending."

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