The month-over-month retail sales in the United Kingdom demonstrated an unexpected rise of 1.2% in February.
The reason behind it was the prevailing grocery shopping at the supermarkets, as the tightness of money made the British rethink their spending and partially opt out of ordering food and eating out in cafes and restaurants.
The figures beat the growth forecast by 0.2%, while the January data was revised in favor of an increase from 0.5% to 0.9%. The year-over-year retail sales in the month of February fell by 3.5%.
Sales volumes in grocery stores showed a 2.3% decline compared to the same period last year. According to official stats released last Wednesday, the prices for food products and beverages surged 18% since the turn of the year through February, which is the biggest increase since 1977.
UK households continue to struggle due to inflation. The consumer price index jumped to a 41-year high of 11.1% in October, remaining in the double-digit range ever since.
As reported by the Bank of England, we can expect an accelerated decline in the inflation rate over the next few months as energy products are getting cheaper while the government is increasing subsidies.
Aside from that, consumer confidence numbers showed that the level of sentiment hit a yearly high, which may help the British economy avoid slipping into recession.
In the space of two years, the UK’s living standard has demonstrated a record decline since the 1950s. In historical terms, consumer sentiment remains extremely weak.Login in Personal Account