The cost of living squeeze is forcing a third of people to cut back on their household spending this year, according to new research.

       Fewer than one in 10 of 3,000 adults surveyed by KPMG believe their spending will increase.

       Spending less on eating out was the most common answer among those looking to reduce their 2022 household spending, while half said they aim to spend less on clothing or takeaways.

       Linda Ellett, head of consumer markets, leisure and retail at KPMG UK said: “The cost of living squeeze is under way for many households and it’s not a surprise to see a third planning on reducing spending.

       “Faced with inflationary pressures, some businesses are mulling upping their prices, or have done so, but they will be mindful that they are operating in a marketplace where consumers are themselves having to tighten the purse strings.

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       “The competition for share of wallet in 2022 is heating up. It’s vital that businesses double-down on their productivity, on the value and efficiency of their supply chain, and assess whether new products or offers can give them an edge in this landscape.”

       One in four respondents said they had not managed to save during the pandemic.

       Of the 74% that had, the rising price of goods and services was named as the biggest deterrent to spending savings, followed by higher taxes and household bills and uncertainty linked to the pandemic.