03-12-2007
BRC highlights concerns over retail confidence
Consumer confidence is continuing to fall, an expert has claimed.
Richard Dodd, head of media and campaigns for the British Retail Consortium (BRC), has warned that as a result of the interest rate increases that have occurred since August 2006, consumer confidence is currently in a period of decline.
Interest rates are currently set at 5.75 per cent, although this could change when the Bank of England's monetary policy committee meets this Thursday (December 6th).
"People's real disposable incomes are falling because inflation is rising faster than people's salaries are going up," said Mr Dodd. "People are feeling less well off and have less money to spend," he added.
This sentiment has been reinforced by research released last month. The study, conducted by GfK NOP, the study found consumer confidence to be at a low-point not seen since March 2003.
Using the current consumer price index, the country's present rate of inflation is 0.1 per cent above the Bank of England's target of two per cent.