Inflation begins to take toll on economy, latest figures suggest

21 June 2017 - Janet Bird

uk retail centre

Inflation is beginning to bite when it comes to retail sales, a new report suggests.

The latest figures released by the Office for National Statistics (ONS) have revealed that retail sales dropped by 1.2 percent month on month in May - considerably more than the 0.8 percent dip predicted by retail analysts.

When compared to the same month last year, the ONS' latest Retail Sales Monitor showed sales in May had grown by just 0.9 percent.

By contrast to these figures, which constitute the slowest growth in four years, prices in stores shot up in May by 2.8 percent - the biggest increase in five years.

The ONS said this across the board increase in prices was "a significant factor" in slowing sales growth.

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