LONDON (Reuters) – British retail sales volumes fell by more than expected in June, dropping by 1.2% after a 2.9% jump in May, the Office for National Statistics said on Friday.
A Reuters poll of economists had on average forecast sales volumes would drop by 0.4% on the month.
While wages are now rising more quickly than inflation, British shoppers have been squeezed by high inflation over the past two years. It has slowed recently and held at the Bank of England’s 2% target last month.
However, underlying inflation pressures have diminished hopes among investors for an interest rate cut on Aug. 1, the date of the BoE’s next scheduled monetary policy announcement.
Over the 12 months to June 2024, volumes fell by 0.2% and were 1.3% below their pre-pandemic level in February 2020, the ONS said.
(Reporting by Suban Abdulla; editing by Sarah Young and William Schomberg)
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