Connect with us

Hi, what are you looking for?

Editor’s Pick

Retail sales continue year-long downward spiral amid cost of living crisis

Retail sales fell by much more than expected in August as the cost of living crisis dragged on demand for both essential and non-essential goods.

Figures from the Office for National Statistics (ONS) showed volumes 1.6% down on July – the largest monthly drop since December last year.

Economists had expected a decline of around 0.5% as the highest rates of inflation for 40 years continue to squeeze consumer spending power, with the price of food and other goods and services reflecting the surge in energy and commodity costs in the wake of the pandemic and Russia’s invasion of Ukraine.

The ONS said: “All main sectors – food stores, non-food stores, non-store retailing and fuel – fell over the month”.

“This last happened in July 2021, when all (COVID) legal restrictions on hospitality were lifted”, it added.

The performance came as more people travelled abroad for their summer holidays and despite good weather.

Retailers will be hoping that the government’s energy price guarantee, which will limit bills through a cap on wholesale prices from October, will ease some of the pressure on purse strings heading in to the core Christmas season.

The guarantee, set at an average of £2,500, will keep gas and electricity bills at around their current annual level just below £2,000 because of the £400 of help for each household announced by former chancellor Rishi Sunak and a temporary cut to green levies within energy bills.

The chairman of the John Lewis Partnership, Dame Sharon White, expressed hope on Thursday that the unprecedented intervention would prove a “game-changer” for the business, which includes Waitrose supermarkets, during the winter months.

The Bank of England, which had forecast last month a recession lasting more than a year from this autumn, has its first opportunity next week to reflect the potential impact of the energy price guarantee in its interest rate deliberations.

It is expected to at least lower its near-term inflation expectations due to the fact that the energy aid, which will also be extended to businesses, will mean bills do not reach the heights that were due in the coming months.

However, it is still forecast by economists to raise Bank rate by a further 50 basis points to 2.25% to try and keep a lid on core inflation.

That would add more pain to tracker and standard variable rate mortgage holders, giving those families less to spend in the wider economy.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.