UK retail sales fall by 1% in December

Decline more than expected

Retail sales volumes in the UK fell unexpectedly in December, as rising prices push consumers to cut back their spending.

According to the Office for National Statistics, volumes fell by 1%, more than the consensus estimate of 0.5%. This follows a 0.5% drop in November.  Retail sales values, unadjusted for price changes, fell by 1.2% last month. When compared with the pre-Covid level in February 2020, total retail sales were 13.6% higher in value terms, but volumes were 1.7% lower. The value of the amount spent was 3.8% higher than in December 2021, but sales volumes fell by 5.8%. "That is what inflation 5x the BoE target looks like," said Michael Brown, market analyst at Trader X. "Spend more, ...