Retail sales plunge as inflation heads north

Retail sales fell more sharply than expected in May as shoppers felt the impact of rising inflation, official data shows.

The Office for National Statistics (ONS) said sales volumes between April and May fell 1.2 per cent, as inflation hit 2.9 per cent.

Sales volumes were up by 0.9 per cent on a year ago, the weakest annual growth rate since April 2013. Average store prices excluding fuel increased by 2.8 per cent on the year – the largest growth since March 2012.

ONS senior statistician Ole Black said: “We have not seen lowergrowthontheyearsince April 2013. Increased retail prices across all sectors seem to be a significant factor.”

Non-food stores were the main contributor to the slowdown, with an annual sales fall of 1.2 per cent.

Ian Geddes, Deloitte’s head of retail, said: “This suggests that retailers are having to pass some of the cost pressure from the rising price of imported goods on to consumers.”