Consumer confidence improved slightly in May, although high prices remain firmly on shoppers’ minds as more than four in five people expect food and energy costs to rise.

New BRC-Opinium data shows expectations for the UK economy over the next three months rose to -48 in May, up from -53 in April.

Consumers’ expectations for their own personal finances also improved, rising to -16 from -21 the previous month.

Retail spending expectations edged up to +7 in May, compared with +5 in April, while overall personal spending remained unchanged at +15.

However, the figures suggest shoppers are still under pressure, with personal saving expectations holding at -8.

Concerns over the impact of conflict in the Middle East also rose during the month.

The proportion of consumers expecting the conflict to push up food prices increased to 82 per cent in May, up from 80 per cent in April.

Those expecting it to raise non-food prices rose to 74 per cent, while 83 per cent said they believed it could increase energy bills, up from 81 per cent the previous month.

BRC chief executive Helen Dickinson said consumer confidence had seen a “slight lift” following signs of de-escalation in the Middle East, with younger shoppers helping drive the improvement in expectations for the economy and household finances.

She said this had been supported by rising real wages among younger consumers, although the overall outlook remained fragile.

“But the outlook remains fragile. Inflation is set to rise, and more than four in five people expect food prices to climb,” Dickinson said.

She urged the Government to act on rising costs facing retailers and their supply chains, warning that pressure on business energy bills could feed through into higher prices for households.

“If Government wants to keep consumer confidence heading in the right direction, it must now make a choice. Act now, or let these inflationary pressures spiral, pushing up prices for households,” she said.

“Energy prices are pushing up costs for retailers and their supply chains, with the government’s energy taxes and levies making up as much as 65 per cent of business bills.

“Cutting these charges is the fastest way to ease inflation and support consumer confidence. Delay will only make the next cost of living squeeze harder for households.”

The BRC-Opinium Consumer Sentiment Monitor was conducted between 5 and 8 May 2026, with a sample of 2,000 UK adults.

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