Britons are budgeting more carefully in the economic downturn because finance is not readily available, it has been suggested.
According to Moneyfacts.co.uk spokesman Darren Cook, credit cards are now "simply not available", meaning consumers are now having to rely on their disposable income.
And he noted that prices are being influenced by the fact that less money can be obtained, stating: "The amount of credit in the market is decreasing so that is having an effect on inflation because there is less money available to go round."
Last month the consumer prices index rate of inflation dropped from 4.5 per cent to 4.1 per cent, according to the Office for National Statistics.
It means secured loans customers may see rates lowered, as the Bank of England has suggested that the base rate may come down in order to offset the possibility of deflation, which governor Mervyn King has predicted for late 2009.
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