UK Retail Sales Grew 1% in August

UK retail sales grew by 1% in August compared with the previous month, with sales of clothing and non-essential items reported as strong.

The Office for National Statistics (ONS) also said that compared with last August, sales volumes were 2.4% higher.
It was the 52nd month in a row that sales have risen.

The ONS also said that prices for non-food sales had risen at their fastest rate in 15 years. It added the underlying pattern was of growth.

The figures add to evidence of rising inflation which has been fuelled, in part, by the drop in the pound’s value since the Brexit vote.

Last week, the Bank of England said this was likely to peak at 3% from its August figure of 2.9%.

The bank said it was likely to raise interest rates if inflation and the economy continued to remain strong.

The figures show higher prices had failed to stop consumer spending, despite the squeeze on wages, which have not been rising as fast as inflation.

Official figures last week showed wages in the three months to July were 0.4% lower in real terms than in 2016.

via BBC

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