Official figures released on Friday indicate that British retail sales experienced an unexpected rise in May compared to April, suggesting that most consumers were managing to navigate the

impact of high inflation on their spending power.

The Office for National Statistics reported a 0.3% increase in retail sales volumes in the UK for the month, following a 0.5% rise in April. This outcome defied predictions of a 0.2% decline by economists surveyed by Reuters.

Heather Bovill, senior statistician at the ONS, commented, "Retail sales grew a little in May, with online shops performing particularly well in selling outdoor goods and summer clothing as the sun began to shine." She further noted that fuel sales rebounded in May after a dip in April, and the favorable weather contributed to increased sales at garden centers, DIY stores, and clothing retailers.

However, food sales experienced a 0.5% decline from April, attributed to rising supermarket prices and a higher number of people ordering takeaways and dining out during May's bank holidays, including a special holiday commemorating the coronation of King Charles.

Comparing May's retail sales volumes to the previous year, there was a 2.1% decrease. The Reuters poll had projected a more substantial decline of 2.6% in sales volumes on an annual basis.

Persistent high inflation has impacted household spending power in the UK. The inflation rate remained at 8.7% in May, surpassing expectations of a slowdown, as revealed by earlier data.

On Thursday, the Bank of England raised interest rates for the 13th consecutive time, bringing them to 5.0%, the highest level since 2008. Photo by SisterLondon, Wikimedia commons.