British consumers are returning to cash to better control their spending in the face of soaring living costs.
New research released by the Postal Services shows that post offices processed £801million in personal cash withdrawals in July, the highest amount since records began five years ago. .
This is an increase of more than 20% compared to the previous year, specifies the study.
It shows, according to Natalie Ceeney, president of the Cash Action Group, that people are “literally counting the pennies” as they grapple with rising prices.
“It is absolutely due to the cost of living crisis,” assured the specialist, who chaired the independent government commission on access to cash.
And to add that “people will withdraw cash to physically put it in jars and say to themselves here is what I have for the bills, here is what I have for the food, and here is what remains. “.
A total of £3.32 billion in cash was deposited and withdrawn at post office counters in July, up £100 million from June.
In June, British inflation had accelerated to 9.4% over one year, a record in 40 years, fueling a crisis in the cost of living which particularly threatens low-income households. The Bank of England has indicated that it expects inflation to exceed 13% by the end of the year.