Data published by the Office for National Statistics (ONS) showed that retail sales increased by 0.5% in April, partially offsetting the March decline of 1.2% (revised from -0.9%). Economists had expected a 0.3% increase. Sales at non-food stores rose 1.0% after a 1.8% drop in March, while food stores sales rose 0.7% after a 0.8% decline. Meanwhile, non-store retailing (mainly online retailers) sales volumes rose by 0.2%, following a fall of 1.4% in March. Sales of motor fuel fell 2.2% after an increase of 0.1% in March.
Over the last three months (through April), retail sales increased by 0.8% compared to the previous three months. This was the strongest growth since August 2021, when sales increased by 1.3%.
The data also showed that, in annual terms, retail sales fell by 3% in April after a 3.9% decline in March (revised from -3.1%). Consensus estimates suggested a 2.8% drop.
The sharp rise in inflation in the country has negatively affected the purchasing power of British households. Although the rate of price growth slowed to 8.7% in April from 10.1% in March, the drop was smaller than expected.