Cost of living: Families in the reduction of on gas and garments as costs rise

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Families are slicing again on gas and clothes as rising costs make them query what they will afford, new figures counsel.

Petrol and diesel gross sales fell by 4.3% in June as costs on the pumps hit new information, month-to-month retail knowledge exhibits.

Clothing gross sales dropped by 4.7%, as UK inflation reached new highs.

Retailers instructed the Office for National Statistics the figures indicated individuals have been slicing again on spending resulting from issues over what they might afford.

Prices within the UK are presently rising at their quickest fee for greater than 40 years.

Inflation – the speed at which costs rise – jumped to 9.4% in June, with the rising price of petrol and meals placing strain on households’ funds.

Although general retail gross sales stay above their pre-pandemic ranges, “the broader trend is one of decline”, mentioned Heather Bovill on the ONS.

“Clothing purchases dipped along with household goods, with retailers suggesting consumers cutting back on spending due to higher prices and concerns around affordability,” she mentioned.

“Fuel sales fell back considerably with retailers reporting the record high prices at the pump hitting sales,” the deputy director for surveys and financial indicators added.

Woman at a petrol pump

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Fuel costs have soared in current months, pushed by the warfare in Ukraine and strikes by plenty of international locations to scale back their dependence on Russian oil.

Average petrol costs rose by 18.1p per litre in June, the ONS mentioned, the biggest month-to-month rise on file. Diesel costs additionally soared by 12.7p per litre.

It led to the typical household automotive costing greater than £100 to refill, based on the RAC.

However, the AA mentioned this week that decrease wholesale prices of gas have been resulting in cheaper costs on the pumps, although they nonetheless stay a lot greater than final 12 months.

Stocking up on sausage rolls

Food gross sales was the one determine to see a lift in June, with volumes rising by 3.1% largely pushed by the Queen’s Platinum Jubilee financial institution vacation celebrations.

“After a fall in May, food sales picked up due to the Jubilee celebrations, but this was the only sector to report an increase,” Ms Bovill mentioned.

Paul Dales, chief UK economist at analysis agency Capital Economics, mentioned the bounce in meals gross sales “was surely due to people stocking up on sausages rolls, cakes and alcohol for jubilee street parties”.

But he added that the additional financial institution vacation “also appears to have meant people spent less time shopping for other items”, akin to clothes and family items.


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