Spring Statement 2022: Cost of living comment

Responding to the Spring Statement: Linda Ellett, Head of Consumer Markets, Retail and Leisure, KPMG UK, said:                                                                                                                                                                            

"While the Chancellor's efforts to ease the rising cost of living are welcome, the squeeze is getting tighter.

"Inflation and geopolitics are driving up the cost of goods and services and having real-term consequences for UK households.  Consumers are having to respond where they can.  Our research shows that eating out, clothing, takeaways, and the weekly shop are the main targets for spending reduction.  And value for money is the main purchasing driver in this climate, albeit quality remains important - particularly to the segment of consumers less squeezed, or for everyone shopping for an occasion or treat.

“Those fortunate enough to have saved during the pandemic started the year sitting on the bulk of those savings due to uncertainty.  But the certainty of rising costs means many will be dipping into those savings to help balance their budget.

"Retailers, who face inflationary pressures themselves, are having to discount where they can in order to keep custom, but this is not sustainable long term.

Businesses that opt to pass those costs onto the consumer need to be mindful of the need to clearly explain price increases in this landscape. Consumers have long memories."

-Ends-

 

For further information please contact:

Steven Reilly-Hii

Media Relations Manager (Consumer Markets)

KPMG LLP

E: steven.reilly-hii@kpmg.co.uk

T: 07510 376635

About KPMG:

KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020. KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 147 countries and territories and has more than 219,000 people working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.

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