Consumer confidence fell in April amid cost increases and warnings of high inflation, new data shows.

According to GfK’s long-running index, consumer confidence decreased four points to -23 this month. All measures, including personal financial situation and the general economic situation in the past and future 12 months, were down in comparison to last month’s figures.

The forecast for personal finances over the next 12 months fell four points at -3, while expectations for the general economic situation over the same period have fallen by eight points to -37 – a level that is 16 points worse than April 2024.

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GfK consumer insights director Neil Bellamy said that there are “good reasons for this downturn”, noting April’s cost increases in the form of utilities, council tax, stamp duty and road tax.

“They [consumers] are also hearing dire warnings of renewed high inflation on the back of the Trump Tariffs”, he added.

Earlier this month, US President Donald Trump announced that a minimum 10% tariff would be applied on all UK imports to the US as of 5 April, providing fresh challenges for retailers and brands as any additional tariff is likely to increase costs and drive inflation upwards.

Bellamy continued: “The inflation rate eased in March, but are we now on the verge of another round of rapidly increasing prices? If so, consumer confidence is likely to collapse and the broad gains seen since the disastrous September 2022 minibudget, when confidence hit a record low of -49, could quickly be eroded.”