Markit Economics and financial information provider Ipsos Mori released its household finance index (HFI) for the U.K. on Wednesday. The household finance index decreased to 42.3 in May from 45.1 in April, reaching 22-month low.

The index measuring the outlook for financial well-being over the coming twelve months increased to 49.6 in May from 49.5 in April.

The current inflation perceptions index climbed to 68.0 in May from 66.9% in April. It was the highest level since December 2014.

The index measuring expected living costs over the twelve months was up to 82.9 in May.

46% of respondents expects the Bank of England's monetary policy to tighten next over next 12 months.

"In a period of heightened uncertainty ahead of the EU referendum, Markit's HFI survey pointed to a marked financial squeeze in May, but households' expectations for the year-ahead were little-changed since April," economist at Markit, Philip Leake, said.