Credit card spending jumped by a third as people took out more debt at a time when the cost of living was tight.
According to industry bodyUK Finance official figures, UK credit card holders spent just under £20bn in May, up 33% compared to the same month last year Did..
Debt is also on the rise, with outstanding balances on his credit card accounts increasing by nearly 10% in his year to May.
The number of credit card transactions also increased by more than a quarter year-on-year, with around 357 million payments made by UK cardholders in the UK and abroad in May.
CPI inflation reached 7.9% in the year to May and has risen further since.
Credit card spending has risen steadily since the beginning of the year, coinciding with rising bill costs and his double-digit food and beverage inflation.
Meanwhile, total debit card spending has increased by only 1% compared to the same period last year, UK Finance said.
This data was obtained when inflation hit double digits and reached 10.1% in July, driven by large increases in food and staple food prices. the National Statistics Office said Wednesday.
(PA Graphics)
(PA Graphics)
has lagged behind inflation, which reached a record level in the three months to June as wages lagged.
Inflation is expected to worsen further in the second half of the year, peaking at 13.3% in October, according to the Bank of England . This could put the UK into recession from the fourth quarter of this year to the last three months of 2023, the bank said earlier this month.
Inflation is largely driven by high energy prices, with the energy price cap expected to rise by about 85% in October. Experts say bills could rise further in January and April of next year.
