Despite the bite of inflation, British retail sales surpassed expectations last month, showcasing the resilience of UK consumers. Official figures revealed that sales

volumes in April increased by 0.5% from the previous month, recovering from a 1.2% decline in March when heavy rainfall kept shoppers at home, as reported by the Office for National Statistics (ONS) on Friday.

Economists surveyed by Reuters had predicted a 0.3% monthly rise in sales volumes, making the actual increase even more noteworthy. Moreover, the three-month period from February to April witnessed a significant growth of 0.8% compared to the previous three months, marking the largest increase since August 2021.

However, in comparison to the previous year, retail sales volumes in April were 3.0% lower, exceeding the forecasted decline in the Reuters poll. While food sales declined by 2.7% annually, indicating the impact of the cost-of-living crisis on household spending, the decrease was less severe than in previous months.

Grant Fitzner, Chief Economist at the ONS, commented, "Retail sales grew, partially rebounding from a poor weather-affected March, with jewellers, sports retailers, and department stores all enjoying a successful month. Supermarkets also recovered from the March slump, despite the persistently high food prices. However, the decrease in fuel sales offset some of these gains, even though fuel prices also dropped."

The surge in inflation has undoubtedly affected consumers' purchasing power in the UK. Although the rate of price growth decreased to 8.7% in April from 10.1% in March, according to recent data, the decline was smaller than anticipated. On Wednesday, Bank of England Governor Andrew Bailey expressed concerns that inflation could persist and become a lingering issue in the coming months. Photo by Whittle100, Wikimedia commons.