LONDON, June 23 Reuters British consumer sentiment hit its highest level since January 2022 as households turn more optimistic about their finance and economy, despite stubborn inflation and rising interest rates, market research firm GfK said on Friday.

GfK39;s headline confidence index rose for the fifth month in a row to 24 in June from 27 in May, moving further away from the 49 record low last September when former prime minister Liz Truss39;s economic plan caused turmoil in financial markets.

June39;s rise was above the 26 forecast in a Reuters poll of economists.

While British consumer price inflation has eased from the 41year high of 11.1, households are still grappling with the highest inflation rate among major rich economies, running at 8.7 in May, unchanged from April.

However, Joe Staton, GfK39;s client strategy director, said consumers were showing remarkable resilience in the face of price rises that have proven more enduring than initially thought.

If consumers continue to weather the current economic storm, then this will provide a firm foundation for getting back to growth, Staton said.

Britain39;s economy has so far avoided forecasts of a recession and GfK39;s measure of how consumers view the economy in the 12 months ahead increased to 25 from 30 in May while feelings about their personal finances rose by seven points to 1.

However, some economists have said the Bank of England, which raised interest rates by a biggerthanexpected 50 basis…