UK consumers, facing inflation leap, cut spending on cards again

BRITISH consumers’ spending on credit and debit cards fell by 4 percentage points over the week to Aug 18, weekly data collated by the Office for National Statistics (ONS) showed, adding to signs of how households are feeling the hit from high inflation.

Credit and debit card spending – based on Bank of England (BOE) CHAPS interbank payment flows, and not seasonally or inflation adjusted – showed that the largest weekly falls were in “delayable” and “social” spending, down by 8 and 4 points respectively, the ONS said.

Britain’s economy is forecast by the BOE to go into a recession later this year as surging energy bills help to drive inflation higher into the double digits. REUTERS