UK retail sales grew in September, but the increase was entirely down to rising prices.
A new report from the British Retail Consortium (BRC) and consultancy KPMG shows that the value of retail sales increased by 2.2% last month, compared with 1% growth in August.
However, sales volumes continued to shrink as household budgets came under increasing pressure.
Inflation is currently close to a 40-year high, at 9.9%.
“As consumer confidence continued to fall, people shopped cautiously, avoiding large ticket items such as new computers, TVs and furniture,” said Helen Dickinson, chief executive of the BRC.
“Many households are also preparing for higher energy costs this winter, with blankets, warm clothing, and energy-efficient appliances, such as air dryers and air fryers, all selling well.”
September was dominated by rising prices, particularly for food and energy, according to Susan Barratt, chief executive of grocery industry specialist IGD.
The UK government’s Energy Price Guarantee contributed to a small rise in IGD’s Shopper Confidence Index, Barratt said.
“However, without much good news out there and shoppers facing a tough winter, there are still many challenges ahead.”
