Rising prices are Britons’ biggest money worry as inflation stays high, survey finds

# Rising prices top Britons’ financial worries as inflation remains stubbornly high, new survey finds Rising prices remain the most acute financial anxiety for UK households, a new monthly consumer confidence survey published Monday confirms, casting a shadow over a fragile cost-of-living recovery already upended by fresh geopolitical energy shocks. The survey, which tracks household sentiment on personal finances, discretionary spending, and broader economic outlook, found respondents have grown “increasingly gloomy” about their financial situations in recent weeks. That shift in public mood coincides directly with the closure of the Strait of Hormuz, the critical global shipping chokepoint that handles roughly a fifth of the world’s oil and liquefied natural gas shipments, following escalating conflict in the Middle East. The disruption has sent global fuel prices spiking, with costs for UK petrol, diesel, and household energy climbing sharply in recent days. The jump reverses a modest, hard-won easing of cost-of-living pressures that had begun to take hold in the first quarter of 2026. Inflation had already lingered above the Bank of England’s 2% target for 18 months ahead of the Hormuz disruption, driven by persistent post-pandemic supply chain bottlenecks, elevated food prices, and tight labour markets pushing up wage growth. While price growth had edged closer to the target in early 2026, the fuel price surge has pushed expectations for near-term inflation higher among both households and private sector analysts, raising fears that temporary price spikes could become entrenched in long-term spending and pricing behaviour. The survey’s timing is no coincidence: it lands days before the Office for National Statistics publishes official April inflation figures on Wednesday, which are widely projected to come in above 3%, up from 2.8% in March, with fuel costs accounting for the bulk of the increase. It also precedes the Bank of England’s Monetary Policy Committee interest rate decision later this month, where most analysts now expect a rate hike as policymakers scramble to prevent the fuel-driven inflation surge from seeping into long-term price expectations. A rate rise would add further pressure to already stretched household budgets: roughly one-third of UK households hold variable-rate mortgages, and will see their monthly repayments jump immediately, while those due to remortgage in the coming months will face steeper borrowing costs. Renters will not be spared, as landlords pass increased mortgage costs onto tenants, while households carrying credit card or personal loan debt will see higher repayment charges. Low-income households will be hit hardest, as a larger share of their monthly income is already allocated to non-negotiable essentials including fuel, food, and housing, all of which are seeing above-average price growth. The survey also points to a near-term reduction in discretionary spending, as households cut back on non-essential purchases to cover rising essential costs. That trend threatens to weigh on broader UK economic growth, which slowed to just 0.1% in the first quarter of 2026. The combination of sticky pre-existing inflation, volatile global energy markets, and potential monetary tightening has left most UK households bracing for further financial strain in the months ahead, with little relief in sight.