UK Consumer Confidence Slide in Increasing Inflation Concerns: Bank of America


London — UK consumer morale has fallen to its lowest since February, when the country was under strict COVID-19 regulations due to economic outlook and concerns over rising prices, Bank of America reports Friday It was shown to.

The survey is consistent with other indicators of consumer confidence in the UK, suggesting that rising pressure on living costs is beginning to drag the economic recovery from the COVID-19 pandemic.

Fuel pumps have remained dry in most parts of the country due to a shortage of truck drivers, and soaring wholesale natural gas prices in Europe have raised the prospect of a surge in utility costs, leading to measurements following the recent turmoil in the UK. It is shown.

“The UK’s own consumer confidence index has been declining over the past two weeks, reaching its lowest seven-day moving average since February,” said Robert Wood, an economist at Bank of America. I did. “

Inflation expectations have risen 60 basis points since August, with nearly one-third of British expecting inflation to exceed 5% in five years, according to a survey.

Bank of England officials are trying to measure whether higher inflation expectations pose a risk to that 2 percent inflation target in the medium term.

Some policy makers are concerned that investors and consumers may lose confidence in the central bank’s ability to curb inflation, raising the outlook for higher interest rates despite the slowing economy. doing.

Earlier on Friday, another study showed that UK employers increased wages for the most new staff since at least the 1990s.

However, Bank of America data showed few signs of adversely affecting the 1970s-style wage and price spiral. Expectations for higher wages in the BofA survey showed little sign of change and remained close to pre-pandemic standards.

Andy blues

Reuters

follow

Posted on