LONDON – The scorching hot weather in Britain last month had a positive impact on sales of sun screen and barbecue food, according to a survey by the British Retail Consortium (BRC) released on Tuesday. However, consumers were more cautious with their spending on high-value items due to rising food prices that continue to put pressure on their budgets. The BRC reported a 4.9 percent increase in retail spending in June compared to the previous year. This growth is consistent with the average for this year, although it is stronger than May’s 3.9 percent and a significant improvement from a 1 percent drop in June last year. June was recorded as the hottest June ever recorded in modern history in Britain, and as a result, the sale of swimwear, beach towels, outdoor games, and garden furniture soared. However, it’s important to note that the BRC’s data is not adjusted for inflation, indicating that the increase in spending last month still represents a decline in the volume of goods purchased. Previous data from the BRC showed that prices among its members were up by an average of 8.4 percent in June, with food prices rising by 14.6 percent despite a decrease in the cost of some food products. In the second quarter of the year, spending on food increased by 9.8 percent, while non-food spending only grew by 0.3 percent. KPMG’s UK head of retail, Paul Martin, who sponsored the data, noted that stubborn food inflation is impacting shoppers’ ability to spend on non-essential items. He expressed concern about the potential impact of further interest rate hikes, high food inflation, and a slower economic recovery on the retail sector’s ability to achieve profitable growth. According to official figures, consumer price inflation was at 8.7 percent in May, and there are predictions that the Bank of England will raise interest rates to 6.5 percent in early 2022, up from the current rate of 5 percent. The BRC reported that like-for-like retail sales, which adjusts for changes in retail space, were 4.2 percent higher in June compared to the previous year, an improvement from May’s 3.7 percent. Barclays’ data showed that consumer spending on debit and credit cards increased by 5.4 percent in June compared to last year. Grocery spending saw the most significant increase at 9.5 percent, the highest since February 2021. However, Will Hobbs, chief investment officer at Barclays’ UK wealth management division, expressed caution about the state of the British economy, stating that inflation is becoming a growing concern and central bankers have more work to do to address the strains on mortgages and other borrowings.
Denial of responsibility! SamacharCentrl is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
