The UK GfK Consumer Confidence Index has fallen to its lowest level since 2023.

The survey results released early by the German market research institute GfK on Thursday showed that the UK consumer confidence index dropped by 4 points to -25 points in April, the lowest level since 2023. This decline was greater than in March, when consumer confidence only slightly decreased after the US launched its first attack on Iran, indicating that households are beginning to assess what the Middle East conflict means for their budgets. This survey further confirms that the ongoing 54-day Iran war and the continued disruption of the global energy market are affecting UK consumers. In March, UK inflation rose to 3.3% due to the largest increase in petrol prices since the outbreak of the Russia-Ukraine conflict in 2022. At the same time, 500,000 households are preparing for a significant increase in borrowing costs as traders expect the Bank of England to hike interest rates.