Inflation fears weigh heavily on UK consumers - BRC
By Abigail Townsend
Date: Tuesday 23 Sep 2025
(Sharecast News) - Concerns about the mounting cost of living are weighing heavily on UK households, a survey published on Tuesday showed.
According to the British Retail Consortium, of the 2,000 people surveyed the biggest concern for the year ahead - cited by 57% of all respondents - was prices rising faster than wages.
Inflation surged around the world in the wake of Russia's invasion of Ukraine, prompting central banks to hike rates.
Since then it has fallen steadily, with the cost of borrowing also declining.
However, while inflation in the UK is well off a peak of 11.1% reached in October 2022, it remains stubbornly above the Bank of England's 2% target.
The latest data from the Office for National Statistics showed the consumer price index stood at 3.8%, and food price inflation at 5.1%, in August.
Last week the BoE left rates on hold at 4%, primarily due to inflationary pressures.
The second biggest concern for respondents to the BRC survey was tax rises, cited by 49% of respondents. Around 26% flagged rising unemployment.
Helen Dickinson, chief executive of the BRC, said: "Working families are understandably worried. With many people barely recovering from the last cost of living crisis, the chancellor will want to protect households and enable retailers to continue doing everything they can to hold back prices."
Chancellor Rachel Reeves is due to present her Budget to Parliament on 26 November.
She is juggling a number of conflicting issues, including sluggish economic growth, soaring government spending and higher borrowing costs as well as inflation, and many commentators are bracing for tax rises.
The single-question survey was carried out by Opinium for the BRC.
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