Consumers in the UK are "feeling the pressure of higher prices" and worsening employment prospects, according to a new report.
The Lloyds TSB Consumer Barometer revealed that 73 per cent of consumers believe prices of a number of goods, including oil and food, have increased in the past 12 months and will rise again in the next year.
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.
Click here to run an energy price comparison, and see if you could be paying less for your gas and electricity.