LONDON, Aug 25 Reuters British consumers39; mood perked up this month as lower inflation made individuals less downbeat about the outlook for their personal finances, although sentiment remained poor overall due to concern about the wider economy, a survey showed on Friday.

The GfK consumer sentiment indicator rose to 25 in August from a threemonth low of 30 in July, its biggest rise since April although still below the average of 10 for the survey, which has been running since 1974.

Economists polled by Reuters had forecast a smaller increase to 29.

While the financial pulse of the nation is still weak, these signs of optimism are welcome during this challenging time for consumers across the UK, said Joe Staton, GfK39;s client strategy director.

Households39; expectations for their personal financial situation over the coming year rose to 3 from 7, well above the reading of 31 a year ago when energy prices were soaring and the government had yet to announce its subsidy programme.

Consumer price inflation dropped to 6.8 in July, down from a 41year high of 11.1 reached in October 2022, although still higher than in all other major economies.

Wage growth is now close to matching inflation for the first time in nearly two years though rapid rises in salaries worry the Bank of England, which raised interest rates to a 15year high of 5.25 this month.

The improvement in the GfK survey contrasts with other recent downbeat data on consumer spending.

Retail sales…