Ernst & Young Item Club has predicted that tough conditions for the retailers of the UK will last for a decade. The forecast was made, keeping in view the low household budgets and people’s focus on paying down debt. The spending of consumers of the UK is expected to rise by only 0.6% this year and by 1.3% in 2012. The consumer spending has remained nearly 4% below its peak level during the last three months of 2010.

The club has said that efforts by consumers to reduce debt levels are likely to play a major role slowing down the economy. Retailers will have to struggle hard to receive a share of shoppers' cash.

The club has also predicted that it will take for the economy to recover. Recent data has revealed that this year the country will experience higher inflation, rising unemployment and falling average incomes.

Market Analysts have predicted that the inflation figures to be released on Tuesday, will show a upward trend similar to that of last year and the inflation may hit 5% in coming few months.