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.


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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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