British consumer confidence hit record lows in August due to inflation driving the cost of living to unprecedented highs.

The official measure of consumer confidence dropped to minus 44 in August, from July’s minus 41 reading. That was the lowest reading since the survey began in 1974, according to data analyzed by research firm GfK.

Consumer sentiment has been dropping consistently all through 2022, dropping three more points in August. It had previously stood at minus 8 one year ago.

GfK client strategy director Joe Staton said, “A sense of exasperation about the UK’s economy is the biggest driver of these findings. Our sub-measure on the general economy over the past year has decreased month-on-month since December 2021.”

Staton noted that all five measures the Index tracks, which encapsulate changes in personal finance over the preceding 12 months, plunged in August, as concerns rose over the cost of living crisis. The index tracking major purchases fell four points in August.

British consumer price inflation surged to 10.1% year over year in July, beating a 4 decade record as skyrocketing food and energy prices continued to intensify the financial pressures on households.

Staton noted, “With headline after headline revealing record inflation eroding household buying power, the strain on the personal finances of many in the UK is alarming.”