LONDON (Reuters) – Growing worries over energy bills, food costs and tax hikes prompted a hefty drop in British consumer confidence this month as people became more downbeat about the economic outlook, a survey showed on Friday.

GfK Consumer Confidence Index dropped to -13 from -8 in August. This is the lowest reading since April, and it was the largest monthly fall since October 2020 when an increase in COVID-19 case numbers led to new lockdown restrictions.

According to a Reuters survey of economists, the reading was unchanged.

These readings are coming a day after the Bank of England stated that the case for higher interest rate “appeared stronger” following an increase in its inflation forecast at the end of this year to more than 4%. This is twice the target rate.

Soaring wholesale European prices have sent shockwaves through energy, chemicals and steel producers, and strained supply chains for consumer goods which were already creaking under labour shortages and Brexit disruption.

Joe Staton (GfK client strategy director) said that all measures had declined in the month. He added that consumers were clearly concerned about their financial future and how it will affect the economy for next year.

The outlook heading into 2022 is described by Staton as “really unsolicited”.

Another survey has also shown a dismal mix of slower economic growth and rising costs for businesses and the public.

The highest annual rate of inflation in nine years was 3.2% for consumer prices last month.