According to a new study by research group GfK, UK consumer confidence has collapsed to its lowest level since records began being kept in 1974, as deep concerns over inflation, costs of living, energy, and the state of the economy over the next 12 months weigh on consumers.

The report showed the confidence index dropped by five points, to -49 this month. That was considerably worse than earlier projections by economists. It marked the fourth new low seen in the last five months, as all measures were considerably depressed.

Personal finances over the next year, which fell nine points, and confidence in the economy, which dropped eight points were some of the the largest falls in the study. The savings index fell 11 points from its position at this time last year.

GfK client strategy director Joe Staton said, “Consumers are buckling under the pressure of the UK’s growing cost-of-living crisis driven by rapidly rising food prices, domestic fuel bills and mortgage payments.”

He went on, “They are asking themselves when and how the situation will improve. Today’s mini-budget, and the longer-term agenda to drive the economy and help rebalance household finances, will be the first major opportunity to deliver that improvement. It will also be a major test for the popularity of Liz Truss’ new Government.”

The report comes on the heels of the Bank of England hiking its key interest rate another 50 basis points, a move which itself followed the US Federal Reserve hiking its key rate 75 basis points. The hikes became necessary as inflation continues to weigh on global economies, with UK inflation hovering in the area of double digits, with an expectation it will increase further in the coming months. Currently sitting at 9.9%,  it is nearly five times the central bank’s target rate of 2%.