Consumer confidence fell sharply in September as higher energy prices and inflation worries soured households' moods, a monthly survey from The Conference Board said.

The research group said its consumer confidence index fell by 6.7 points to 81.9 in September from 88.6 in August. Economists polled by The Wall Street Journal had expected a higher reading of 89. September's reading was the lowest reading since 2014.

"References to prices, the high cost of goods and services, and oil and gas prices in particular, rose to new heights, reflecting September's surge in fuel costs," said Dana M. Peterson, Chief Economist, The Conference Board.

Consumers' assessment of current business and labor-market conditions-retreated by 7.9 points to 109.3. Meanwhile, the expectations index, based on short-term outlook for income, business, and labor market conditions fell by 5.9 points to 63.6.

The Conference Board said perceptions of employment conditions also softened, with the labor market differential--the share of consumers saying jobs are "plentiful" minus the share saying jobs are "hard to get" -retreating by 2.5 percentage points to 1.7%. Economists watch this labor-market differential to gauge how tight labor conditions are for households.

A separate reading from the University of Michigan showed that consumer sentiment declined in September, but the mood improved from the survey's preliminary reading.

"The further hit to confidence recently likely reflects the renewed pressure on households from the higher cost of gasoline and other fuels," a note from Pantheon Macroeconomics said.

Economists will get a read on the Federal Reserve's preferred inflation reading, Personal Consumption Expenditures on Wednesday-which is expected to remain above the central bank's target, highlighting sustained inflation pressures to consumers.

The Federal Reserve raised interest rates for the first time in three years this month to combat above target inflation amid elevated energy prices tied to the conflict in Iran. The quarter-point rate increase most directly affects short-term borrowing costs for consumers, including credit cards and auto loans.

The Conference Board survey shows that the share of consumers anticipating higher interest rates over the next 12 months jumped by 5.2 percentage points to 68.4%.

"Americans feel jobs are more scarce and are pulling back on plans for homes, cars, and big-ticket purchases, emitting a warning sign for holiday spending even though layoffs data show employers aren't yet cutting workers to match the gloom," wrote Jeffrey Roach, Chief Economist for LPL Financial.