British consumers worry as inflation puts squeeze on spending power

Households in Britain have become more worried about the outlook for their finances in the 12 months ahead as rising inflation puts a squeeze on their spending power, a new survey shows.

IHS Markit said its index measuring how households feel about their personal finances fell to 45.8 in June from 47.1 in May, the most pessimistic in three months and one of the lowest readings since the end of 2013.

The firm’s overall Household Finance Index, measuring how UK people feel about their current situation, rose to 43.8 from 42.6 but remained below the 50 point no-change level.