UK consumer confidence hits two-year high but experts warn rising inflation could soon end the run

From the Newshound archive · first published 25 September 2026 · last updated 26 September 2026.

British consumer confidence climbed to its highest level in over two years in September, with GfK's barometer rising one point to -13, marking three consecutive months of growth for the first time since summer 2024. Experts cautioned the recovery may be fragile, with inflation climbing from 2.9 to 3.1 per cent in August driven by surging petrol and diesel prices. The figures hand Andy Burnham a boost ahead of next month's Budget, which the Prime Minister has already warned will be "challenging". Neil Bellamy of GfK warned that rising energy and fuel costs could soon cause sentiment to falter.

September's headline gain was led by a four-point improvement in how consumers rated the economy's performance over the previous twelve months, bringing that measure to -36.

The major purchase index — confidence in buying big-ticket items — fell one point to -8, a sign spending caution persists.