Retail sales in the UK are rising unexpectedly in August

August 26, 2018 7:15 amComments Off on Retail sales in the UK are rising unexpectedly in AugustViews: 12

Retail sales UKRetail sales in the UK are rising unexpectedly in August, but large retail chains forecast a sharp fall in employment over the coming months. The Confederation of the British Industry (CBI) reported retail sales growth in August, but according to the survey, traders have lowered their expectations.

“The summer heatwave has kept shoppers out on the high street, with consumers splurging on food and drink for barbecues and garden parties”, explained the CBI head of economic intelligence, Anna Leach. “The long-term challenges facing the retail sector are significant and won’t be resolved overnight. Subdued real wage growth and digital disruption continue to pile pressure on firms, while high street retailers continue to suffer under an out-dated business rates system”, added she.

Meanwhile, last week it became clear that the UK inflation accelerated for the first time since the beginning of July, causing many British households to feel pressed by price increases that are almost similar to the rise in wages.

According to data from the National Statistical Service, the consumer prices increased by 2.5% in July, after having remained unchanged at 2.4% in the previous three months. The increase confirms the forecasts of economists.

This is the first time since November, when inflation is gaining momentum, which slows the recovery of the purchasing power of many households, although it is expected to decline in the coming months.

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