Consumer confidence boosted by falling inflation

Published: 17 February, 2012

Although 2012 may be a "rollercoaster ride" for shoppers, falling inflation is beginning to boost consumer confidence, according to grocery insights company, IGD ShopperVista.

More shoppers have adapted to the new economic reality, believe the worst is behind them, and are beginning to feel more optimistic, according to the research.

In January the monthly survey of over 1,000 food and grocery shoppers found whereas almost half may believe they will be worse off this year, it's a drop from last year's 61%.

The findings also showed the lowest numbers of shoppers to date expect food prices to get much more expensive over the next 12 months - 21%, down from one in three, (33%) a year ago.

Four in ten (40%) now believe their personal economic situation will be "about the same" over the next twelve months, up from 29% a year ago.

Joanne Denney-Finch, chief executive, IGD, said: "While some of these changes are slight, they do represent a shift in shopper sentiment that should be widely welcomed.

"A growing number of shoppers seem to believe that the worst is behind them.

"They have adapted to the new economic reality and are aware that UK inflation may have peaked.

"Rising food, fuel and utility prices are the main factors that shoppers fear will make them worse off in the future, so good news in this area is helping improve shopper confidence.

"The economic environment remains challenging and we expect 2012 to be a rollercoaster ride for many shoppers.

"However, with more people becoming used to the way things are, they are focusing again on values, with one in three (34%) saying that quality is extremely important when choosing where to shop for food and groceries - the highest level for more than a year."

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