By Ian McConnell
RETAIL sales volumes in Great Britain dropped by 0.3 per cent last month, in contrast to a forecast rise, amid signs that rampant inflation is taking its toll on consumers.
The fall was revealed in seasonally adjusted data published yesterday by the Office for National Statistics. A poll of economists by Reuters had indicated an expectation retail sales volumes would have risen 0.6% in February. Excluding automotive fuel, retail sales volumes fell by a sharper 0.7% month-on-month in February. Automotive fuel sales volumes rose 3.6% last month.
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There was a 4.8% month-on-month drop in February in sales volumes in the non-store retailing category, which takes in online shopping. Food store sales volumes fell by 0.2%. Non-food store sales volumes increased by 0.6%. Clothing sales volumes rose sharply as coronavirus restrictions eased and people returned to offices.
By value rather than volume, retail sales rose 0.7% month-on-month in February, reflecting higher prices.
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ONS data on Wednesday showed annual UK consumer prices index inflation rose from 5.5% in January to 6.2% in February, a 30-year high. The Bank of England expects inflation to rise to around 8% this spring, and has flagged potential for it to go higher still later this year.
Pollster GfK’s closely watched consumer confidence index dropped by five points to -31 in March. This was the fourth straight monthly fall.
Joe Staton, client strategy director at GfK, said as the latest index was published yesterday: “A wall of worry is confronting consumers this month and there is an unmistakable sense of crisis in our numbers. Consumers across the UK are experiencing the impact of soaring living costs with 30-year-high levels of inflation, record-high fuel and food prices, a recent interest-rate hike and the prospect of more increases to come, and higher taxation too – all against a background of stagnant pay rises that cannot compensate for the financial duress.”
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