You can’t keep the UK shopper down. The retail sales figures for August are testament to that. Is a hike in interest rates on the way to cool things off?
Boom! UK shoppers hit the shops with gusto in August. The amount spent grew by 1.0%m/m and 5.6%y/y. The volume purchased, which adjusts the amount spent for inflation, rose 1.0%m/m and 2.4%y/y. Rising employment means more people are earning but that can’t account for retail sales growth. Either we dipped into our savings or we borrowed more. The Monetary Policy Committee will have noticed the rise in inflation to 3.2%. That will strengthen the hand of members who believe that the time for a rise in Bank Rate is coming closer. Continue reading