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News release

UK Inflation: new study by Global Counsel and Savanta ComRes

New research from Global Counsel, in collaboration with Savanta ComRes, examines the UK public’s perceptions of inflation and price rises. It highlights the generational differences between consumers’ views on why prices are rising, the impact it will have on their own expenditure and who should be responsible for finding a solution to inflation. 

Prices up 10%, the public blames businesses and favours price caps

 

  • There is very low awareness of the actual rate of inflation, with only 19% thinking it is 2% or less. Notably, 81% believe it is 3% or higher, and even more strikingly, 78% of those aged 18-34 think the rate is 10% or more.

  • UK adults are more likely to blame business profit-seeking (36%) than increased business costs (24%) for rises in prices of goods and services. Young people aged 18-34 are twice as likely to blame the profit-seeking motives of businesses (44%) rather than rising costs (22%).

  • More than half of UK adults would support price controls on supermarket goods (52%), two-thirds would support price controls on gas and electricity bills (66%), and nearly half would support the government controlling house prices (45%). Support for government price controls is remarkably consistent across age groups, social class, and political affiliation.

  • 50% of UK adults believe the UK is experiencing inflation above 10%, with 63% of those aged 18-34 believing prices are rising at more than 20%. Less than one-fifth of respondents have an accurate idea of current rates of inflation.

The British public has a mixed understanding of inflation, is broadly aware that prices are set to rise, and feels businesses, government and the Bank of England must all play a role in helping to control any significant rise in inflation. Key findings include:

  • 64% of UK adults rate their current personal finances as good, but only 40% say the same about the economy in general.

  • UK adults are more likely to blame business profit-seeking (36%) than increased business costs (24%) for rises in prices. Young people aged 18-34 are twice as likely to blame the profit-seeking motives of businesses (44%) rather than rising costs (22%).

  • There is very low awareness of the actual rate of inflation, with only 19% thinking it was 2% or less. Notably, 81% believe it is 3% or higher, and even more strikingly, 78% of those aged 18-34 think the rate is 10% or more.

  • Seven in ten say they have heard about shortages in HGV drivers causing food shortages and higher prices in the news (71%). 

  • Sections of the public are broadly comfortable with the government taking an interventionist approach to tackle price rises, with 30% supportive of new laws to cap the prices businesses can charge on goods and services, the second most popular option. Just 16% are in favour of increases in migration to ease labour shortages.

Commenting on the findings, Stephen Adams, Senior Director at Global Counsel said: 


“There are clear generational differences in the experience of inflation and these are reflected in views on what it is, why it happens and what should be done about it. This is a real challenge for a cohort of politicians and business leaders who may have limited first-hand experience of operating in an inflationary environment and reading and responding to the public mood on rising prices.” 

--ENDS--
 

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