Inflation fears push consumer confidence to 11-month low

Confidence has slipped in the event of the economy to its lowest level since last spring, according to the British Federation of retail (BRC).

The latest monthly survey of the Commercial Authority -which was conducted between 2000 adults in the United Kingdom -shows the consumer confidence in a net balance of -37, decreasing three points from January, and represents its lowest level in 11 months.

The report follows new data that reveals that inflation has risen to 3 percent in January, and is not expected to be paid by high food and travel costs. Publishing personal financial feelings sharply decrease, and seven points slide to -11. Helen Dickenson, CEO of BRC, warned that shoppers have prepared for more expensive invoices in the coming months, noting the high energy fees, a plan in national insurance contributions to employers from April, and new packing fees.

“Consumer expectations of the economy have decreased by 40 points since the general elections last summer,” Dickenson said. “In addition to 7 billion pounds of additional costs faced by retailers, including high national insurance and packaging, many companies indicate the freezing of potential employment and job reduction for beginners.”

According to the National Statistics Office, the prices of food and beverages in January amounted to an annual increase of 3.3 percent – the highest level in ten months. Chris Heer, SSBC's chief economist at high food costs of the cost of living, warned that if daily inflation remains high, morale and spending may remain defeated.