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Price comparison sites 'could save more money' - 16/05/2011

More people could be carrying out energy comparison tasks in the coming months as the squeeze on consumer spending gets worse, according to Ernst & Young.

The economic forecasting group noted that rising inflation, stalled pay rises and energy price hikes will see householder finances hit hard, meaning customers will go to greater lengths to get the most out of their money.

"Shoppers are going to be a lot savvier about when, where and how they shop. They are becoming more price aware and so we'll be increasingly using comparison websites to find the best deals," said Steve Wilkinson, head of consumer products at Ernst & Young.

"It's clear that the outlook for the consumer remains bleak; we're facing another 18 months of pain before wages can once again keep pace with inflation," added Andrew Goodwin, senior economic advisor.

Meanwhile, Bank of England governor Mervyn King has predicted that the price of cheap gas could rise by 15 per cent this year alone.

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