–Jul Retail Sales +0.2% m/m; unch. y/y; median +0.3% m/m; +0.2% y/y
–Jul Retail Sales ex fuel +0.2% m/m; -0.2% y/y;median +0.4% m/m;0.1 y/y
LONDON (MNI) – Retail sales volumes rose moderately in July as
prices on the High Street rose at their fastest annual pace for more
than 15 years, figures released by National Statistics Thursday showed.
Retail sales volumes including auto fuel were up 0.2% on the month
in July and were flat on the year, a little below the median forecast
for rises of 0.3% and 0.2% respectively.
There was a small upward revision to the June data which now shows
sales rose 0.8% on the month against the initially estimated 0.7%
increase.
Excluding auto-fuel sales rose 0.2% on the month and were down 0.2%
on the year. This was below the median forecast for an increase of 0.4%
on the month and 0.1% on the year.
The minutes for the August Bank of England Monetary Policy
Committee meeting projected economic growth to remain weak in the near
term reflecting the continued squeeze on households’ real incomes.
The data appear to show that higher prices are curbing consumer
demand. The implied retail sales deflator ex-auto fuel rose to 3.1% in
July from 2.3% in June, the highest since October 1995.
The largest price gains were seen in non-food where the deflator
rose to 1.4%, the highest since November 1996. In particular, clothing
and footwear prices were up 3.5% on the year, the highest since October
1991.
The food price deflator remained high at 5.7%, just slightly down
from 5.8% in June.
During July, sales volumes at predominantly food stores rose 0.7%
on the month, while non-food sales were down 0.1%. Clothing and footwear
and household goods stores volumes fell 0.3% while department store
sales were flat.
The only non-food category to rise this month was ‘other’ store
volumes which rose 0.2% on the month.
Non-store retailing and repair sales were down 0.9%.
–London bureau: 0044 20 7634 1624; email: ukeditorial@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]
