People in Britain turned more pessimistic this month in the face of fast-rising inflation and the prospect of more interest rate hikes by the Bank of England, a survey showed on Friday.
The GfK Consumer Confidence Index fell to -19 in January from -15 in December. This was its lowest since February 2021 when the country was under a strict coronavirus lockdown, and compares with -7 in February 2020 just before the pandemic hit Europe.
Staton said it was unlikely that the mood would improve once the current wave of Omicron coronavirus infections passes, because worries had shifted to the cost-of-living squeeze which was likely to affect people for months to come. Inflation in Britain hit a nearly 30-year high of 5.4% in December, according to data published on Wednesday. Economists say it could top 7% when domestic fuel bills rise in April, just when workers will face a tax increase.
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