“A wall of worry” made up of a 30-year high inflation rate, the Russia-Ukraine war and looming tax hikes is plaguing UK households, reveals a closely watched survey released today.
Brits’ optimism dropped five points to minus 31 this month marking the fourth month in a row consumer confidence has fallen, according to research firm GfK.
Worryingly, the survey was carried out before a string of bleak forecasts revealed the scale of the hit to UK living standards this year.
Britain’s fiscal watchdog the Office for Budget Responsibility is forecasting the worst drop in living standards since 1956 this year, caused by inflation averaging over seven per cent across the whole of 2022.
The cost of living is already running at 6.2 per cent its highest level since 1992, prompting the Bank of England to hike interest rates to pre-pandemic levels of 0.75 per cent.
“A wall of worry is confronting consumers this month,” Joe Staton, client strategy director at GfK, said.
“Consumers across the UK are experiencing the impact of soaring living costs with 30-year-high levels of inflation, record-high fuel and food prices, a recent interest-rate hike and the prospect of more increases to come, and higher taxation too,” he added.