US consumer confidence sank to its lowest level in 28 years this month as anxious shoppers grappled with surging food and fuel costs, according to a new survey published on Friday.

The Reuters/University of Michigan consumer confidence index plunged from 62.6 to 59.5 in May, the lowest reading since June 1980. Meanwhile, one-year inflation expectations rose to 5.2 per cent, the most since February 1982, and up from 4.8 per cent in April.