Consumer lending in Britain rose last month to a five-year high, largely due to rising credit card lending, which analysts say may be a sign of rising living costs.
Bank of England data showed that consumer credit increased by 1, 1.876 billion ($ 2.46 billion) in February, about 1 1 billion more than expected and the largest increase since March 2017.
The economist says the increase could be due to boosting consumer optimism as Omicron’s spread has declined.
“But another possibility is that more consumers would have to resort to credit in view of the increased pressures on the cost of living,” says Martin Beck.
Inflation hit 6.2% in February, a 30-year high, and the government’s budget office this week forecast the rate to be close to 9% by the end of 2022, contributing to the biggest drop in living standards since 1950s.
New borrowing for January was revised downwards to 14 143m from the previous announcement of 8 608m.
Credit card lending corresponds to most of the increase in February, to 1,5 1.5 billion (the largest increase since 1993, when monthly data began to be recorded).
Source: Capital
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