The indicator of consumer confidence in the UK has fallen to its lowest level since 1974 amid discontent among British households due to a sharp rise in the cost of living. The consumer confidence index calculated by the research company GfK fell to -44 points in August from -41 in July. This indicator was the lowest index value in the history of the study. Analysts predicted a decline in the index to -42. Subindexes measuring consumers' assessment of their own finances and the state of the economy over the past year and 12 months have also declined. GfK notes that the drop in all indicators reflects strong concern about the rapid rise in the cost of living and dissatisfaction with the state of the British economy. It is worth noting that the GfK consumer confidence index has been continuously declining for the past year. This is happening against the background of a rapid acceleration of inflation in the UK, which in July for the first time since 1982 exceeded 10%. The Bank of England expects that further price increases could trigger a recession in the British economy this year. In particular, food prices are rising at the fastest pace since 2008, and household electricity bills have already doubled. Experts note that by January next year, these bills could grow even more, to more than 4,000 British pounds ($4816.80) per year. Moreover, the crisis of confidence in public policy will worsen as the winter cold approaches.
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