LONDON (MNI) – Retail sales volumes fell sharply in February as
prices on the High Street rose at their fastest pace on record, figures
released by National Statistics showed Thursday.
Sales including auto fuel fell 0.8% on the month in February and
were up 1.3% on the year. Analysts had forecast a 0.6% monthly drop and
2.1% yearly increase.
Excluding auto-fuel volumes fell 1% on the month and were up 1.2%
on the year, against the median for a 0.5% monthly decline and increase
of 2.1% on the year.
The latest decline in sales follows strong growth in January which
was revised down to 1.5% on the month from the previously estimated 1.9%
gain.
While the weaker growth on the High Street is likely to
be used by many to strengthen the case for no change in interest rates,
the report showed prices rising at a record rate, which explains, at
least in part, why volumes may have dropped.
On the month in February the retail sales deflator excluding auto
fuel rose 2.4% on the month, the largest monthly gain since records
started in 1988. The annual deflator rose to 2.5% the highest since
August 2008.
There were record rises in clothing and footwear, household goods
and other store sales.
During February, volumes fell in nearly all of the main retail
sales categories with only non-store retailing posting a gain.
–London bureau: 00 44 207 862 7492; email: drobinson@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]
