Consumer confidence hits a two-year high but experts warn rising inflation could soon knock it back

From the Newshound archive · first published 25 September 2026.

Britain's consumer confidence index climbed to -13 in September, its third consecutive monthly rise, reaching a two-year high that hands Andy Burnham a welcome boost ahead of his first Budget. GfK's Neil Bellamy cautioned that returning inflation strips away one of the recovery's strongest drivers. Middle East conflict has sent energy markets into turmoil, pushing the consumer price index to 3.1% in April and keeping the Bank of England on edge. Chancellor John Healey faces a Budget balancing act at the end of October, with soaring debt, sluggish growth and mounting household energy bills all bearing down.

The savings index jumped five points to 27, but the major purchase index dipped, suggesting households are holding back on big spending.

The Bank of England held interest rates last week but warned borrowing costs could yet rise if inflation worsens.

GfK's Bellamy asked pointedly: 'With inflation, energy and fuel prices rising, could we soon see consumer sentiment falter?'