The impact of inflation on UK consumer spending power

Inflation has become a significant issue in the United Kingdom, affecting nearly every aspect of daily life.

The rising cost of goods and services is putting immense pressure on consumers, decreasing their purchasing power and growing their demand for savings.

Let’s explore the context of inflation in the UK, the subsequent price increase, and the solutions consumers adopt to cope with these challenges.

Inflation in Europe and the UK

Inflation in Europe has been on a steady rise, driven by various factors such as supply chain disruptions, increased demand for goods, and energy price hikes.

In the UK, the inflation rate reached 8.7% in May 2023, marking a significant increase from previous years.

This sharp rise in inflation has been felt across multiple sectors, with consumers experiencing higher costs for essentials such as food, fuel, and housing.

One of the primary causes of inflation in the UK is the ongoing global economic recovery from the COVID-19 pandemic.

As economies reopened, demand surged, outpacing supply and leading to higher prices.

Additionally, the geopolitical tensions in Eastern Europe have contributed to rising energy costs, further exacerbating the inflationary pressures.

Increase in prices and decrease in purchasing power

As inflation continues to rise, so do the prices of goods and services across the UK.

According to Numbeo, the cost of living in the UK has increased significantly, particularly in the “restaurant” and “market” categories.

The rising cost of raw materials has led to higher prices in restaurants, while the cost of groceries has also seen a steep increase.

This trend is reflected in the Consumer Price Index (CPI), which shows a consistent upward trajectory, particularly in the food category.

The impact of these price increases on consumers is profound.

With wages not keeping pace with inflation, many UK residents are finding it increasingly difficult to maintain their standard of living.

The decrease in purchasing power has forced consumers to make tough choices, cutting back on non-essential spending and seeking ways to stretch their budgets further:

Saving strategies during inflation

In response to the rising cost of living, UK consumers are turning to various strategies to save money.

One of the most effective methods is utilising discount codes and vouchers, which have become increasingly popular during this period of economic uncertainty.

Platforms like Bravovoucher.co.uk have seen a surge in users looking for ways to save on their purchases, particularly in the food and restaurant sectors.

BravoVoucher, launched in 2017, is dedicated to providing online users with thousands of verified discount codes and offers from major e-commerce sites.

The platform is part of the Bravo Savings Network, owned by WeBravo S.R.L., and has become a go-to resource for consumers looking to reduce their spending.

In 2023, Bravovoucher experienced a significant increase in searches related to savings and discount offers, reflecting the growing demand for cost-saving solutions amid rising inflation.

Data from Google Trends and SEO platforms like Ahrefs show that searches related to savings reached their highest levels in 2023 compared to the past five years.

This trend highlights the increasing importance of platforms like Bravovoucher in helping consumers navigate the challenges posed by inflation:

Deal savings report

In 2023, the trend of using discounts and vouchers substantially increased, particularly in the food and restaurant sectors.

For instance, in the UK, BravoVoucher users saved an average of €31 per food purchase and €10 per restaurant visit.

These savings are crucial for consumers who are trying to manage their budgets more effectively in the face of rising costs.

Conclusion

Inflation is a pressing issue in the UK, leading to increased prices and a decrease in consumer purchasing power.

However, platforms like Bravovoucher.co.uk offer valuable solutions to help consumers save money during these challenging times.

By planning budgets, searching for discounts, and using platforms like Bravovoucher, UK residents can mitigate the impact of inflation on their daily lives and continue to afford the essentials they need.

Featured image via Envato Elements