UK retail sales declined sharply in May as rising food prices and the country’s cost of living crisis affected consumer spending.
The Office for National Statistics (ONS) reported on Friday that retail sales fell 0.5 % last month from a 1.4 % increase recorded in April.
However, the figure recorded was slightly better than the market expectation for a contraction of 0.6%.
The main contributor to this fall was due to the decline in food sales due to rising prices. Data earlier this week showed inflation in the UK hit 9.1 in May, a 40 -year high.
ONS deputy director for surveys and economic indicators, Heather Bovill told the study found customers spend less at food stores because of the rising cost of living.
A separate report from Gfk showed consumer confidence in the UK fell to its lowest level this month as soaring prices, pressure on incomes and disruption from the strike have dampened national sentiment.
Meanwhile, the British Industry Conference says retailers also expect the situation to get worse in July as inflation limits consumers ’willingness to spend.
