Consumers worried about inflation
Consumer confidence is being dented over fears about the rising rate of inflation. The latest Consumer Barometer from Lloyds TSB Corporate Markets shows that the level of people expecting interest rates to be higher rather than lower in 12 months grew by two per cent in January. In turn, this concern is damaging consumer confidence in the UK.
Trevor Williams, chief economist with Lloyds TSB Corporate Markets, believes that even further interest rates may not stem the worry consumers are feeling. He said:”As far as consumers are concerned, any respite granted in interest rates today will be short-lived. Even so, if we do see a cut this will ease the burden of interest payments and as such will help boost economic activity.”