UK consumers expect prices to rise in next six months

More than half of UK consumers expect prices to rise in the next six months, according to new research from Verdict Retail.

In a poll of 2,000 consumers, Verdict Retail found that the future consumer sentiment index has dropped again, falling 6.6 percent to -32.9 with regards to perceptions of the economy, personal finances, and future retail spending.

October's inflation index, looking at views of anticipated price rises in areas such as fuel, food, and clothing, also took a hit. It dropped 8.7 percent in September, reaching its lowest point since November 2013.

The study found that 48.2 percent of consumers anticipate the UK economy to worsen over the next six months, up 8.5 percent from September, while 51.7 percent of consumers expect prices to rise over the next six months, with the highest rises expected in supermarket food and fuel.

Verdict Retail analyst, Zoe Mills, said: “Consumer sentiment has taken a significant knock over the last two months and with March 2017 (when the UK government is expected to invoke Article 50) looming ever closer, this index may see little improvement over the coming months.

“Retailers are likely to have a particularly hard time as almost 50 percent of consumers plan to spend less, compared to under a third of consumers planning to spend less this time last year.”