Pets and package holidays – how over-65s drive UK consumer spending

Household expenditure on cars, holidays and pets drives recovery but signs emerge of a slowdown

Spending by British households has returned to its pre-financial crisis levels in real terms, driven by purchases of cars and spending by older consumers on package holidays and pets.

Figures from the Office for National Statistics showed average weekly spending in the UK rose to 554.20 in the financial year ending March 2017, an increase from 533 the previous year. Transport and recreation were the two categories where expenditure increased the most, rising by about 5 on average per week.

Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.

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