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91 per cent of consumers believe Budget 2013 will leave less to spend on groceries

Almost half of participants in a new survey also believe the price of cigarettes will increase a lot.

Image: Leon Farrell/Photocall Ireland

A NEW STUDY shows consumer confidence remains low ahead of this year’s Budget with 91 per cent believing it will leave them with less money to spend on day-to-day groceries.

The survey of 1,010 people, conducted for Checkout Magazine by Empathy Research, found that more participants (93 per cent) who have children are of this opinion.

Just 6 per cent of 35-44 year olds believe the Budget will not have an impact on the amount they have to spend on groceries, compared to 8 per cent of 45+ year olds and 9 per cent of 25-34 year olds.

Participants were also asked about whether they felt the ‘old reliables’, alcohol and tobacco, will see price increases in the Budget.

70 per cent of participants think the price of alcohol will go up by ‘a small amount’ in the Budget with 1 in 5 saying they think the price will increase ‘a lot’.

Over half (52 per cent) of participants think the price of cigarettes will go up by ‘a small amount’ in the Budget while 44 per cent believe prices will increase ‘a lot’.

Some 29 per cent of participants think the government will introduce measures in the 2013 Budget to encourage people to start spending again.

Participants aged 18-24 were among the most optimistic with 41 per cent saying people will be encouraged to start spending again.

“Consumer confidence has been shattered by successive hairshirt Budgets, so it’s unsurprising that such a high proportion of consumers are feeling pessimistic about December 5th,” said Stephen Wynne-Jones, editor of Checkout.

“While the supermarket sector has strived to meet consumer demand for value, the long-term health of the industry and the well-being of many Irish brands is dependent on consumers being encouraged to ‘spend a little extra’. Whether the government is mindful of that remains to be seen.”

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