Posted on: 12th Jan 2015
It seems there are plenty of things to be financially optimistic about this year.
Not least the petrol prices dropping on a daily basis. And then to find another ray of financial goodness to bring in the new year we need look no further than the highstreet.
According to the British Retail Consortium prices actually fell every month in 2014 – and it believes that shoppers could be in for a bargain year.
The suggestion is that the trend will continue throughout this year. Predictions not unrelated to the cost cuts we see at the petrol pumps. It’s not a huge leap of imagination. After all, when commodities cost less, then so does everything else because the retail supply chain will benefit directly from it.
Looking at figures prices are generally about 1.7% lower, says the BRC, compared to in December 2013.
And this has been helped by the fact that retailers have certainly done their work trying to get shoppers back in stores.
As well as events such as Black Friday; an American shopping bonanza that has reached European shores in no uncertain terms. It wasn’t really Black Friday, however, as Black Week, because most retailers extended their pre-Xmas cuts for a weekend and well in to the next week. Sales were estimated at about £1.6billion.
Good news too at the supermarket – Food has only gone up 0.1% in December following a 0.2% drop in November. And BRC figures show clothes and footwear prices are down 10% and electrical goods were around 5.4% cheaper.
All this healthy competition makes for a win win for us shoppers.
Pause For Thought.
On the flip side, debt is rising and all this bargain hunting is effectively encouraging people to spend what they haven’t got. The Bank of England was reported as saying that a spending spree before Christmas saw borrowing on credit cards and personal loans rise at their fastest rate since 2007. And the British Bankers’ Association revealed a similar trend.
The key is to savings, of course, are to buy things you actually need and that would otherwise have cost you more as opposed to just buying things that you could do without but you can get really cheap. If you don’t need it, it’s not a bargain!
TOP TIP: What people should try to do is stay savvy and take advantage of key savings on things they need, so we can invest our pennies into long term savings.
Let’s hope the financial good news continues well into Spring.