According to a Bank of England (BoE) report, rising inflation and stagnant income of the people in the UK in the post Brexit period has led to the shoppers opting for cheaper items. It has been reported that rates of the goods in the country were highest in the last four years, whereas the spending growth of the consumers continued to slow down.
The reason cited for the shift include caution among consumers and their decision to trading down to cheaper products or brands, notes the report. BoE also anticipates the country’s economic growth to slow down to 1.7 per cent in 2017 and to 1.6 per cent in 2018. As for the wages, they might increase by 2 per cent this year and by 3 per cent next year.
UK had outperformed multiple leading economies in 2016 and followed it up with a slowing growth in the first half of 2017, recording the worst growth since 2012.