Squeezed households borrowed less money last month according to new figures from the British Bankers’ Association (BBA).
It said that consumer credit eased to growth of 5.1% in May compared to 6.4% in the previous month as people eschewed personal loans and overdrafts.
Inflation hit its highest level for nearly four years in May at 2.9%.
Eric Leenders, BBA’s managing director for retail banking, said: “This month’s figures show that in the run-up to the general election, credit growth in personal loans, cards and overdrafts has slowed, which was reflected in lower spending; with increased household costs affecting growth in deposits and saving.”
