Consumer confidence rebounds from historic lows but experts warn over inflation

‘Too early to talk about green shoots of recovery but uptick should be welcomed’. Words: Alastair Jamieson

Confidence may be recovering after food price inflation hit a 45-year high in December (PA)

Consumer confidence remains “severely depressed” by the cost of living crisis but has made a surprise rebound from historic lows, figures show.

A long-running consumer confidence index by GfK rose by a significant seven points this month, although the headline score remains at minus 38.

It comes as a senior economist warns that interest rates should be raised even further to control inflation, despite financial market expectations that base rates may have peaked.