Inflation Continues to Eat into UK Budgets

Inflation ate further into the budgets of British households last month, according to a survey of consumers, adding to signs that households will be feeling under pressure in the run-up to the June snap election planned by Prime Minister Theresa May.

Financial data company IHS Markit said on Wednesday that its Household Finance Index fell to 42.5 in April from 43.1 in March, one of its lowest readings since mid-2014.

While households became a little less pessimistic about the outlook for their finances, they reported the biggest reduction in cash available to spend since August 2014, citing rising living costs and subdued pay growth.

Reuters

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.