Responding to the latest ONS Retail Sales Index figures, Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“The summer sunshine brought a slight uplift in sales. Summer clothing, air conditioning appliances and outdoor foods all benefitted from record temperatures, but most retailers will still be seeing falling volumes in the face of rising inflation.

“Consumer confidence has hit new lows as inflation soared past 10% and talk of a recession has grown. The Bank of England expects inflation to reach over 13% in October when energy bills rise again, further limiting discretionary spending for struggling households. For many businesses, 2022 is proving to be every bit as challenging as the pandemic.”

Background:

According to the ONS, on a Year-on-year seasonally adjusted basis:

• Sales by Value (amount spent) increased 7.8% YoY (this growth is primarily due to rising prices)
• Sales by Volume (quantity bought) fell 3.4% YoY

GfK Consumer Confidence fell to -44