Cost of living: Higher prices 'continue to dampen consumer confidence'

Higher prices continued to dampen consumer confidence in the third quarter of 2022 according to a survey by Danske Bank.

Inflation hit 11.1% in October which is putting pressure on household budgets.

The Danske Bank consumer confidence index fell significantly from the previous quarter and is well below the same time last year.

It found 56% of respondents felt worse off than last year, compared to 18% who felt their finances had improved.

The survey said consumers felt less confident about current finances, future finances, job security and expected spending on expensive items.

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Almost two thirds (63%) thought their finances would worsen in the next year and 15% thought they would improve.

Danske Bank chief economist Conor Lambe said: "Looking forward, demand in the economy is projected to be weaker in 2023 and the rate of inflation is expected to decline gradually.

"However, the rate of price rises is still expected to exceed the 2% target when averaged over the year, with annual consumer spending being squeezed as a result."