Consumer confidence has fallen again to a near-historic low amid inflation woes and growing concern about another jump in energy bills. GfK’s long-running Consumer Confidence Index dropped three points in January to minus 45 after a short-lived and weak rally in the last quarter.
Confidence in the general economy for the coming 12 months fell one point to minus 54 and remains 22 points lower than last January, while the forecast for personal finances increased to minus 27 but is still 25 points lower than this time last year. The major purchase index, an indicator of confidence in buying big ticket items, fell six points to minus 40 – some 30 points lower than last January.
The pessimistic mood comes as the rate of inflation dipped for the second month in a row in December, to 10.5%, offering more evidence the peak of the cost-of-living crisis has passed but offering scant relief for households and businesses who are still facing eye-watering prices. Food price inflation hit yet another 45-year high, at 16.8%, in December, while the Government will scale back its energy support package from April, capping average household gas and electricity bills at £3,000 a year, up from £2,500 currently.
