UK DATA: Feb retail sales inc. fuel -0.8% m/m; +1.3% y/y
–Feb retail sales ex fuel -1% m/m; +1.2% y/y
–Jan retail sales inc. fuel revised down to +1.5% m/m from +1.9%
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Feb retail sales fell 0.8% m/m and were up 1.3% y/y below the
median for -0.6% and 2.1%. There was a down revision to Jan, although
this was offset by a Dec up revision. Ex-fuel the fall in sales was even
larger at 1%. Leading the decline was non-food store sales where volumes
fell 1.6% m/m, with department stores down 3.2%, household goods down
2.5% and clothing down 1.3%. Food sales were down 0.4% m/m. Part of the
fall in volumes is surely due to rising prices with the deflator (ex
fuel) rising to 2.5% the highest since Aug 08. Clothing and footwear
price inflation is now at 3.2% the highest since Dec 1991. Barring a
strong bounceback in March, retail sales growth is likely to be only