The Camel’s Back

Setting out his forecast for growth (1.4% in 2017) and inflation (2.7% in 2017), Mark Carney has noted that it is ‘going to get difficult’ for those on the lowest incomes. For most, relatively modest inflation is likely to result in a tightening of belts. However, for some, inflation might be the straw that breaks the camel’s back, with food costs comprising a large part of household spending at lower incomes. Potentially this opens up a divergence in performance for convenience sales in low income areas versus those with stronger demographics.