Brits' Inflation Concerns due to Deficient Budgets
Brits are more pessimistic about the cost of living, the results of the Bank of England’s Inflation Attitudes Survey revealed.
The latest quarterly survey of public attitudes on inflation, conducted in February, showed 67 percent of respondents expect the economy to become weaker rather than stronger, compared to 61 percent who thought so in November 2010.
Consumers’ estimation of the rate of inflation over the coming year was up from November’s 3.9 percent to 4.0 percent.
A further 34 percent of respondents thought interest rates should stay where they are to help the economy recover, down from 38 percent, with more people this February thinking that rates should go up - 25 percent compared to 20 percent in November. More people also thought interest rates going down would help the economy than did in November.
General consensus revealed the majority of people would prefer it however if interest rates went down for their own benefit, as 28 percent of respondents claimed, compared to 25 percent who believe they would benefit if they rose.
Changing Lifestyle Habits to Save Money
Another question the survey asked the respondents was how they would react to changes in their expectations of inflation over the next year. The majority replied that they would shop around for better value goods and services, 65 percent.
Fifty five percent admitted they would cut back on spending and try and save more, and 23 percent said they would take a different or second job, or work longer hours.
Budget with a Prepaid Card
If you are concerned about inflation and are already struggling to afford the current cost of living, you may benefit from a prepaid card.
Often people struggle to budget their income on a monthly basis, and this is where the prepaid card can help. All you need to do is load your budget onto the card and then use it to make your monthly spends.
You can be sure you will not overspend as it does not have an overdraft facility.