The results also show a rise in confidence in personal finances, with the January figures for finances over the past year rising two points to -12, 19 points higher than January 2023.

The forecast for personal finances over the next 12 months broke even with a score of nought, two points higher than December and 27 points higher than a year ago.

The measure for the general economic situation of the country during the last 12 months was up three points at -41, 30 points higher than in January 2023.

Expectations for the general economic situation over the next 12 months have increased by four points to -21, which is 33 points better than January 2023.

The major purchase index, which measures whether now is a good time to make a major purchase, is up three points to -20, which is 20 points higher than this month last year.

The Savings Index, covering whether now is the right time to save money, has stayed the same at +27 in January, 13 points above January 2023.

The findings are based on a sample of 2,000 UK adults, with research carried out between 2nd and 16th January 2024.

Joe Staton, client strategy director at GfK, said: “Importantly, the view on our personal financial situation for the coming year has gained two points and now stands at zero.

“This is exciting as it ends 24 consecutive months of negative scores for this measure and this significant change is the best single indicator for how the nation’s households feel about their income and expenditure.

“Despite the cost-of-living crisis still impacting many households across the UK, consumers appear to be encouraged by the positive news about falling inflation.”