UK consumer confidence falls at fastest rate since Covid as cost of living bites

AI desk brief

UK consumer confidence fell 11 points to -24 in October, the sharpest monthly drop outside the Covid period since 2016, as rising living costs and Middle East-linked energy pressure hit households. GfK said inflation at 3.5% and surging petrol, diesel and energy bills are eroding sentiment ahead of the budget, while the major purchase index slid 14 points to -22, pointing to softer spending into winter.

For metals, the key transmission is stagflationary: higher UK inflation expectations, weaker consumer demand and elevated geopolitical risk may support safe-haven demand at the margin, even as the move is UK-specific rather than a direct gold market driver. The article also flags higher government borrowing costs and persistent business cost pressure, which could keep pressure on the Bank of England policy outlook.