Consumer confidence in the UK rose only slightly in September, indicating that the optimism sparked by Andy Burnham as Prime Minister is beginning to subside as concerns about the cost of living increase. JFK said that its consumer confidence index only rose 1 percentage point to -13, while the index had soared sharply by 9 percentage points in the previous two months. At the same time, consumers said their willingness to buy bulky items has declined. Neil Bellamy, director of consumer insight at JFK, said in a phone interview: “This is a tipping point. People are looking to the future and are concerned about the trend in energy prices.” Burnham succeeded Kiel Stammer as prime minister in July and immediately announced a series of measures aimed at helping people cope with the cost of living crisis. However, this optimism, known as the “Burnham rebound,” appears to be running out of momentum as consumers are bearing the full impact of the war in Iran. Rising fuel and energy costs are driving up inflation and increasing pressure on the Bank of England to raise interest rates. Meanwhile, there is growing speculation that Chancellor of the Exchequer John Healy will raise taxes in next month's budget to make up for the damage to public finances caused by the recent bond market turmoil. An analysis by Bloomberg Economic Research found that household energy bills are likely to rise another 25% as the price cap is readjusted in January — an increase that will drive the consumer price index inflation rate to more than 4% in 2027.

Consumer confidence in the UK rose only slightly in September, indicating that the optimism sparked by Andy Burnham as Prime Minister is beginning to subside as concerns about the cost of living increase. JFK said that its consumer confidence index only rose 1 percentage point to -13, while the index had soared sharply by 9 percentage points in the previous two months. At the same time, consumers said their willingness to buy bulky items has declined. Neil Bellamy, director of consumer insight at JFK, said in a phone interview: “This is a tipping point. People are looking to the future and are concerned about the trend in energy prices.” Burnham succeeded Kiel Stammer as prime minister in July and immediately announced a series of measures aimed at helping people cope with the cost of living crisis. However, this optimism, known as the “Burnham rebound,” appears to be running out of momentum as consumers are bearing the full impact of the war in Iran. Rising fuel and energy costs are driving up inflation and increasing pressure on the Bank of England to raise interest rates. Meanwhile, there is growing speculation that Chancellor of the Exchequer John Healy will raise taxes in next month's budget to make up for the damage to public finances caused by the recent bond market turmoil. An analysis by Bloomberg Economic Research found that household energy bills are likely to rise another 25% as the price cap is readjusted in January — an increase that will drive the consumer price index inflation rate to more than 4% in 2027.