Lloyds TSB's chief economist Trevor Williams added that he expected a struggle to pay bills leading to a demand for higher wages.
He explained: "A record number of consumers are feeling the pressure of higher prices and this, together with worsening employment prospects, is clearly having a negative impact on consumer spending.
"But as consumers struggle to pay their bills, we expect demand for higher wages to increase - official data showed wage growth hit a six month high in September."
Mr Williams also stated that the current conditions of the UK economy have led many experts to expect a cut in interest rates in the coming months.
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