UK May retail sales -0.5% vs -0.7% m/m expected

• Prior +1.4%; revised to +0.4%
• Retail sales -4.7% vs -4.5% y/y expected
• Prior -4.9%; revised to -5.7%

• Retail sales (ex autos, fuel) -0.7% vs -1.0% m/m expected
• Prior +1.4%; revised to +0.2%
• Retail sales (ex autos, fuel) -5.7% vs -5.1% y/y expected
• Prior -6.1%; revised to -6.9%

The drop in retail sales was mostly driven by a decline in food sales, with feedback from supermarkets suggesting that customers were spending less on food shopping amid the rising cost of living. Clothing sales were boosted ahead of the summer with fuel sales also increasing on the month, but offset by a drop in sales for household goods and department stores - again highlighting more pessimistic consumption behaviour.

As inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term continues to grip the economy, it looks like the cost-of-living crisis is set to worsen in the months ahead for the UK.