Consumer confidence in the UK has dropped significantly, reaching its lowest measure in 11 months according to the British Retail Consortium's survey. The net balance fell to -37, a three-point decline from January. Compounding this issue, inflation unexpectedly rose to 3 percent in January due to escalating food and travel costs, leading to a bleak personal financial sentiment that dropped sharply. BRC chief executive Helen Dickinson warned of impending financial pressures facing consumers, coupled with retailers facing substantial additional costs that could lead to job cuts and hiring freezes.
Consumers' expectations of the economy have plunged by nearly 40 points since last summer's general election, and many businesses are signalling potential hiring freezes and entry-level job cuts.
The report follows fresh data revealing that inflation rose to 3 per cent in January, unexpectedly propelled by higher food and travel costs, which complicate the cost of living.
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