UK households cut back on food shopping and eating out in March but splashed out on subscriptions to TV streaming services to catch new seasons of popular shows, data suggests.
Consumer card spending grew 4% year-on-year in March, according to a Barclays report.
It comes after the consumer prices index (CPI) measure of inflation took a surprise leap in February to 10.4%, up from 10.1% in January, and driven by a rising cost of food and alcoholic drinks in pubs and restaurants.
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According to the Barclays report, which combines hundreds of millions of customer transactions with consumer research, spending on groceries increased 7.1% – as 88% of shoppers said they were concerned about rising food prices and 62% reported finding ways to reduce the cost of their weekly shop.
More than half of those looking for savings – 53% – said they were cutting down on luxuries or one-off treats, while 38% said they were planning meals in advance to avoid food waste, or using vouchers to get money off their grocery bill.
Home improvement and DIY stores enjoyed a seasonal boost according to the report, while spending on digital content and subscriptions was up 4.1% – its highest year-on-year rise in five months.
The report said this was likely driven by the latest season premieres of popular shows such as Succession, Ted Lasso and The Mandalorian.
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Spending on utilities was up 39.3% on last year as households kept their heating on due to the cold weather persisting into March.
As the cost of living crisis gathered steam, 54% of consumers said they were cutting down on discretionary spending, especially eating out at restaurants, 62%, and buying new clothes and accessories, 63%.
Looking ahead, just a third of Britons – 35% – said they would spend on activities during the King’s coronation bank holiday weekend in May.
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Esme Harwood, director at Barclays, said: “The below-inflation rise in grocery spending shows that Brits are still trying their hardest to shave money off their weekly shop, as energy bills continue to rise.
“Cutbacks are also impacting restaurants, with a number of cash-strapped consumers even avoiding social plans that involve meals out.
“Hospitality and leisure businesses will be hoping that the busy bank holiday period provides a boost to counteract consumers’ everyday cost-savings.”
Opinium surveyed 2,000 respondents between 24 and 28 March.
