UK retail sales tumble as inflation jump hits demand
2022.04.22 09:41
FILE PHOTO: Shoppers walk on Oxford Street during Boxing Day sales in central London, Britain, December 26, 2019. REUTERS/Henry Nicholls
LONDON (Reuters) -British retail sales dropped in March by much more than expected as the surge in inflation hurt consumer demand, according to data published on Friday that sent a fresh warning sign for the economic outlook.
Retail sales volumes slid by 1.4% in March from February, a worse reading than any economist forecast in a Reuters poll that had pointed to a 0.3% monthly drop, the Office for National Statistics said.
Food and petrol sales fell sharply on the month with the ONS citing rising prices as possible explanations for the falls.
Online retail sales also declined.
A survey published earlier on Friday showed consumer confidence close to its lowest level since records began nearly 50 years ago.
Bank of England Governor Andrew Bailey said on Thursday that the British central bank was walking a tight line between tackling inflation and avoiding recession.
Earlier this month, Tesco (OTC:TSCDY), Britain’s biggest retailer, warned of a drop in profits as high inflation squeezes the supermarket group and its customers.
