- IHS Markit index shows UK households pessimistic about finances for 2017-208
- UK household finances remain under intense pressure from rising living costs
- 58 percent of respondents expected higher interest rates in 12 months time
- Inflation in the United Kingdom currently at near four-year high
- Prices up prices by 2.9pc year-on-year, biggest annual increase since June 2013
- In May consumer spending in the UK fell for the first time in almost four years
By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. John Maynard Keynes, The Economic Consequences of the Peace (1919)
Inflation is taxation without legislation Milton Friedman
Inflation is no longer in stealth mode
Inflation at 2.9% and wage growth lagging behind has meant household consumers in the UK are under intense pressure from rising living costs.
The IHS Markit Index and Survey measures how people feel about their current situation. The June reading changed from 43.8 from 42.6, indicating that households are the most pessimistic about their finances than they have been in three months.
Reports have linked this to the latest Consumer Price Index readings combined with inflation and interest rate expectations. It is no surprise that with weakening economic indicators and an uncertain political outlook that sentiment is falling.
The fall in the British pound, following the 2016 Brexit vote, is seemingly being blamed for…..
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