UK Consumer Confidence Plummets Amid Cost of Living Pressures

Source reports published 23 Oct 2026, 10:00 am AEST

Consumer confidence in the UK has fallen to a record low, driven by rising cost of living pressures including high energy bills and international conflicts. The Chancellor is under pressure to implement measures to support households amid economic challenges.

What happened

• Consumer confidence in the UK has fallen at the fastest rate outside the Covid pandemic since the 2016 Brexit vote.
• The GfK consumer confidence index dropped by 11 percentage points to -24 in October, largely due to relentless cost-of-living pressures and the ongoing war in the Middle East.
• Neil Bellamy, GfK’s consumer insights director, attributed this to unresolved international conflicts contributing to domestic inflation.
• The major purchase index fell by 14 points to -22, suggesting consumers may cut back on spending.
• The Treasury has been approached for comment, with CBI economist Cameron Martin stating that the government must give manufacturers ‘breathing space’ to invest.
• Official figures showed headline inflation rose to 3.5% and the government deficit reached £24.5 billion.
• Consumer energy bills could reach £2,000 a year from January, according to forecasts.

Original reporting

• Guardian: UK consumer confidence falls at fastest rate since Brexit vote as cost of living bites
  2026-10-23T00:00:00+00:00
• Al Jazeera: US consumer sentiment hits a near-record low before midterm elections
  2026-10-23T00:00:00+00:00