According to a survey released on Monday, UK retail sales fell once again in June as household finances came under pressure from rising living costs. However, retailers anticipate that sales volumes will stabilize next month.
The monthly retail sales index, published by the Confederation of British Industry (CBI), declined from -10 in May to -9.
Martin Sartorius, Chief Economist of the CBI, stated that retailers would continue to face challenges in the coming months.
“A further contraction in sales volumes indicates that the retail sector is struggling. Household finances are still under pressure due to high inflation,” said Sartorius.
A measure of expected sales for the next month remained unchanged at zero.
The CBI reported that the volume of retail sales in June was on average +1% for this time of year, compared to -18% in May, and it was expected to largely remain in line with seasonal norms at -2% in July.
Inflation in the UK exceeded expectations in both May and April, reaching 8.7%.
With price growth significantly surpassing the Bank of England’s target of 2%, analysts anticipate that the central bank will continue to raise interest rates. This follows a series of 13 consecutive rate hikes since December 2021.