UK retail sales rose in July after three consecutive months of decline.
The growth was driven by inflation, with shop prices significantly higher than they were a year ago.
Figures from the British Retail Consortium (BRC) show that the value of total sales was 2.3% higher last month than it was in July 2021. However, this does not take account of inflation and the BRC said that sales actually fell in volume terms.
The heatwave in July boosted sales of hot weather essentials, said Helen Dickinson, chief executive of the BRC.
“Summer clothing, picnic treats and electric fans all benefited from the record temperatures as consumers made the best of the sunshine. However, with inflation at over 9% many retailers are still contending with falling sales volumes during what remains an incredibly difficult trading period.”
Dickinson noted that consumer confidence remains weak, and the rise in interest rates coupled with warnings of a recession later in the year “will do little to improve the situation”.
Household budgets will come under further pressure in the autumn, with the Bank of England expecting inflation to exceed 13% in October when energy bills rise again.
As a result, the BRC chief added, both consumers and retailers are in for a “rocky road” throughout the rest of 2022.
