The number of consumers believing that prices for goods and services rose over the last year has hit record levels, according to the latest research.

Lloyds TSB Corporate Markets' consumer barometer revealed that of the more than 2,000 consumers questioned, 73 per cent felt prices had risen over he last 12 months, suggesting some could have found themselves getting into debt as a result.

Furthermore, 84 per cent expect prices to continue to rise over the coming 12 months, compared with just three per cent who expect them to fall.

Around six in ten (61 per cent) anticipate interest rates to be higher in 12 months than the current 5.75 per cent, suggesting some could be looking for a debt consolidation loan to cut down on loan payments.

"A record number of consumers are feeling the pressure of higher prices and this, together with worsening employment prospects, is clearly having a negative impact on consumer spending," said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.

The Bank of England's monetary policy committee will make its next interest rate decision on December 6th.ADNFCR-1287-ID-18370309-ADNFCR

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