Inflation news | Cost of living: NI consumer confidence is being impacted by inflation.

Consumer confidence in Northern Ireland continued to fall in the second quarter of 2022, a Danske Bank survey has suggested.

More than half of respondents believe their financial situation would deteriorate during the upcoming year.

Comparatively, 26% of respondents in the final quarter of 2021 and 40% of those in the first quarter of 2021 had unfavourable expectations.

In the second half of June, 1,000 participants in the most recent poll were interviewed.

Conor Lambe, chief economist at Danske Bank, stated: "During the survey month, the UK inflation rate reached a multi-decade high of 9.4%.

The biggest contributor to the decline in consumer confidence was this high inflation, and it appears likely that inflation of consumer prices will continue to climb.

Compared to the first quarter, when 38% of respondents indicated they anticipated to spend less on pricey things over the next year, 49% of respondents said the same.

Nevertheless, there is still a widespread belief that the job market rebound will last.

In response to a question about job security, 60% of respondents anticipated no change and only 9% believed their situation would get worse. These results are basically consistent from the last survey.

According to the most recent official data on the labour market, hiring continued in June.

Payrolls for businesses increased by 775,400, setting a new record and continuing a trend of expansion.

The official figures also revealed that Northern Ireland's pay increases were not keeping up with the country's 9.4% inflation rate.

According to HMRC earnings data, the average employee's compensation increased by 6.7% over the previous year.

In the meantime, research from the think tank Resolution Foundation indicates that inflation may reach a peak of 15% in the first quarter of 2019.

It claims that recent additional wholesale gas price rises are to blame for this.

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