According to the British Retail Consortium (BRC), confidence in the state of the economy was slid to the lowest level.
The last monthly survey of the trade body -conducted among 2,000 British adults -shows consumer confidence that marks a net balance of -37, three points from January Down and a low of 11 months.
The report follows new data, which showed that inflation in January increased to 3 percent, unexpectedly propelled by higher food and travel costs. Personal Financial sentiment placed the sharpest decrease and slid seven points to -11. Helen Dickinson, the Chief Executive of the BRC, warned that Shoppers are bracing for more expensive accounts in the coming months, referring to Rising Energy Charges, a planned increase in the national insurance contributions of the employer from April and new taxes on the packaging.
“The expectations of consumers of the economy have fallen nearly 40 points since the general elections of last summer,” said Dickinson. “In combination with £ 7 billion in extra costs that retailers are confronted, including higher national insurance and packaging taxes, many companies signal potential recruitment recommendations and entry-level foot reductions.”
According to the Office for National Statistics, prices for food and drinks reached an annual increase of 3.3 percent in January – the highest in ten months. Chris Hare, senior economist at HSBC, called the peak in food costs “useless” for the costs of living, warns that if daily inflation remains high, consumer sentiment and expenditure can remain modest.