Fears over inflation have reached their highest level the Citigroup and Yougov survey began three years ago.
Over the course of the next 12 months, British consumers are expecting to see their spending power dip considerably as inflation reaches 4.6 per cent, according to the latest data.
This is a notable rise from February when expectations were that inflation would generally be kept just above three per cent.
Many people are already struggling to become debt free and to cope with the rises in their cost of living but matters could be set to get worse before they improve.
A spokesperson for Ipsos Mori said: “While public concern about the issue has not reached the levels recorded during the recession of the early 1990s, the current trend appears to be of rapidly growing apprehension.”
According to a recent report from the GfK NOP research firm, consumer confidence in the UK is “almost in freefall”.
By Simon Dean