Consumers are cutting back but cost of living crisis means payday borrowing is on the rise

Britons are taking steps to reduce their personal inflation but it can’t stop a looming debt crisis, says James Moore

Roughly one in five Britons are engaging in ‘desperation borrowing’ (Getty/iStock)

Consumers are growing cautious.

The CBI distributive trends survey reports an “average” May but has warned of a “weak” outlook amid rising inflation and nervy consumers. Retailers have responded by reigning in investment plans.

The latest Kantar survey of the nation’s shopping baskets has found that food inflation hit 7 per cent over the past four weeks, its highest since May 2009. Aldi and Lidl, with their lower price but restricted choice strategies, were once again the sector’s fastest-growing grocers. Tesco, with its comparatively aggressive price-matching strategy, also did well.