Almost two-thirds (63%) of people feel under pressure to reduce expenditure in light of rising inflation, a study has claimed.

Research specialist Ipsos MORI found women and families are under the most pressure to cut back on spending in a survey of more than 2,000 current account holders.

56% of female respondents said they were feeling the pinch from rising living costs, while that percentage rose to 60% for those with children.

According to the ONS, inflation as measured by the Consumer Prices Index climbed to 3% in September 2017.

With inflation outpacing wage growth, many homeowners are increasingly feeling the squeeze on household budgets.

In homes where the situation was described as ‘tight’, Ipsos MORI found consumers reduced spending on:

• shopping for leisure (48%)
• socialising or entertainment away from home (46%)
• non-essential groceries (43%).

Robin Bulloch, managing director at Lloyds Bank and Bank of Scotland, said:

“When paying more for everyday items like food and fuel, people are faced with tricky decisions on where to cut back in other areas.

“Women and families seem to be feeling the strain more than most, but they are also the savvier spenders – taking more time to seek out the best deals and offers.”

We can help with your financial planning.