18th Sep 2025 04:57
(Alliance News) - UK consumer confidence deteriorated in September as inflation is now one of the public's biggest concerns, data published by the British Retail Consortium showed on Thursday.
According to BRC-Opinium data, consumer expectations over the next three months of the state of the economy worsened to minus 36 in September from minus 32 in August.
Expectations for personal financial situation fell to minus 7 in September from minus 6 in August.
Personal spending on retail expectations, however, edged up to plus 5 in September from plus 4 in August.
Personal spending overall expectations meanwhile fell to plus 14 in September from plus 16 in August.
Personal saving expectations deteriorated to 0 in September from plus 2 in August.
Helen Dickinson, chief executive of the British Retail Consortium, said: "Confidence among Millennials fell dramatically this month, as their expectations for both the economy and their own finances fell by double digits. The same generation also cut spending expectations for the months ahead, though this was largely offset by improvements for Gen Z, who remain the most optimistic.
"Worries about the budget, combined with the increase in the cost of living, have eroded confidence, with little sign that inflation will come down soon."
She added: "Inflation is now one of the biggest concerns among the public, with food inflation expected to rise to 6% by the end of the year. All eyes are now firmly locked on the 26 November, and what the chancellor will announce.
"The government can help mitigate inflation, improve the cost of living, and raise consumer confidence, by ensuring the upcoming business rates reforms offer a meaningful reduction to retail business rates, while ensuring no shop pays more as a result."
The sample of the survey was conducted between September 2 and September 5 and included 2,000 UK adults, with the results having been weighted and assigned a net score.
On Wednesday, the Office for National Statistics had reported that the annual consumer price index inflation rate for food and non-alcoholic beverages increased to 5.1% in August from 4.9% in July. The monthly rate accelerated to 0.4% in August from 0.2% in August 2024.
Further, the ONS had reported that the pace of annual consumer price inflation was 3.8% in August, unchanged from July. The latest reading fell short of the FXStreet-cited consensus, as an acceleration to 3.9% was forecast by consensus.
On a monthly basis, consumer prices rose 0.3% in August, as expected, after a 0.1% rise in July from June.
Annual service price inflation eased to 4.7% in August, from 5.0% in July.
By Tom Budszus, Alliance News slot editor
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