Retail sales slow as Budget and inflation weigh on spending plans

Retail sales slowed in September

Retail spending slowed in September, as a tax raising Budget and higher household inflation expectations forced Brits to tighten their belts before the all-important ‘Golden Quarter’.

Total retail sales in September increased by 2.3 per cent year on year, down from the 3.1 per cent that the sector notched up in August and the 2.5 per cent growth enjoyed in July.

Non-food sales – including in categories like fashion and household appliances – slowed particularly sharply, rising by just 0.7 per cent on last September, compared with 1.8 per cent growth the previous month.

However, grocery sales rose by 4.3 per cent year on year, in a sign that shoppers are not cutting spending in the face of a fresh bout of inflation that has seen annual price rises hit f