UK consumers, facing inflation leap, cut spending on cards again

LONDON - British consumers' spending on credit and debit cards fell by four percentage points over the week to Aug. 18, weekly data collated by the Office for National Statistics showed, adding to signs of how households are feeling the hit from high inflation.

Credit and debit card spending - based on Bank of England CHAPS interbank payment flows, and not seasonally or inflation adjusted - showed the largest weekly falls were in "delayable" and "social" spending, down by eight and four points respectively, the ONS said.

Britain's economy is forecast by the BoE to go into a recession later this year as surging energy bills help to drive inflation higher into the double digits.