New figures show that US consumer confidence slumped this month as high fuel and food prices ate into household budgets.
According to research group the Conference Board, its consumer confidence index fell from 70.4 in February to 63.4 as hopes for an improved economy in the future wilted.
Amid Middle East turmoil and sustained demand from emerging economies, food and energy prices appear to have eroded confidence that had been at a three-year high.
'Consumers' inflation expectations rose significantly in March and their income expectations soured,' said the Conference Board's research director Lynn Franco.
Average US petrol prices have risen 23 cents in the last month and are up nearly 80 cents from a year ago, according to the American Automobile Association.
Separate figures showed that US single family home prices fell for the seventh straight month in January, bringing prices to just above April 2009 lows.
The S&P/Case-Shiller composite index of 20 metropolitan areas declined 0.2% in January from December. Prices in the 20 cities have fallen 3.1% over 12 months.
