UK retail sales bounce back from tough December but 'warning lights blinking'

Sales volumes 3.6% above pre-Covid levels

UK retail sales increased by 1.9% during January following a 4% fall in December, according to figures released today (18 February) by the Office for National Statistics, with home improvements significantly contributing to the uptick.

While non-food items provided the biggest bump, having risen by 3.4% during the month, food store sales volumes fell below pre-Covid levels for the first time, dropping 0.8% below where they were in February 2020. Sales volumes across the piste were 3.6% above their pre-pandemic levels, although 76% of consumers say they can now feel the impact of rising inflation. UK inflation of 5.5% has economy in 'chokehold' with peak yet to come Neil Birrell, chief investment officer and fund manager on the Premier Miton diversified fund range, said given the rise in inflation and borrowing co...