New research reveals a stark disconnect between official economic data and public sentiment, with British households expressing unprecedented levels of financial anxiety despite recent improvements in inflation figures.
The Pessimism Gap
According to exclusive polling conducted for The Guardian, nearly three-quarters of UK adults believe the country's economy has worsened over the past year. This overwhelming negativity persists even as the Office for National Statistics reports inflation has fallen closer to the Bank of England's 2% target.
Inflation: The Unshakeable Fear
Price rises remain the dominant concern for British households, with a staggering 83% of respondents identifying inflation as their top economic worry. This figure has shown remarkable resilience, barely budging from previous surveys despite the changing economic landscape.
The data reveals a nation struggling to shake off the psychological impact of the recent cost of living crisis, suggesting that the memory of soaring prices continues to shape financial behaviour and outlook.
Political Fallout and Public Distrust
The polling indicates significant public scepticism about economic management, with:
- Only 21% expressing confidence in the government's handling of the economy
- Just 26% trusting the Bank of England's approach to inflation control
- Over two-thirds believing the opposition party would fare no better
Regional Variations in Economic Pain
The research uncovers notable geographic disparities in economic sentiment, with households in northern England and Wales reporting significantly higher levels of financial stress than those in London and the southeast.
"What we're seeing is an economic recovery that hasn't yet reached people's pockets or their psyches," noted one economist reviewing the data. "The statistical improvement hasn't translated into improved public confidence."
Looking Ahead: A Cautious Nation
The findings paint a picture of a cautious British public, with most households expecting to tighten their belts further in the coming months. This collective pessimism could itself become an economic headwind, potentially slowing consumer spending and economic growth.
As one poll respondent summarised: "The numbers might say things are getting better, but my weekly shop and energy bills tell a different story."
