Sales fell much more than expected in August as the cost of living crisis dragged down demand for both essential and non-essential goods.
Figures from the Office for National Statistics (ONS) showed volumes fell by 1.6% in July – the biggest monthly drop since December last year.
Economists had expected a decline of about 0.5% as the highest rates of inflation for 40 consecutive years it has been spent to express the consumer of the government, with prices and other goods and services of waves in industry and commodity costs reflected in the case of the pandemic and the Russian invasion of Ukraine.
The ONS said: “All the main sectors – food stores, non-food stores, non-retail stores and food – fell over the month.”
“This last happened in July 2021, when all (COVID) legal restrictions on the hospital were lifted,” it added.
It was accomplished that many went abroad for summer vacations and good weather.
Retailers will be hoping that the government’s guarantee of energy prices, which will end through a cap on wholesale prices from October, will ease some of the pressure on the stock market during the core Christmas period.
The trust, which is set at an average of £2,500, will keep the gas and electricity bill around the current annual level below the £2,000 level thanks to the £400 subsidy for each family announced by former chancellor Rishi Sunak and a temporary cut in green choices within the energy bills.
The president of the John Lewis Society, Mrs. Sharon White, expressed hope on Thursday that there would be a new intervention. “game cashier” for the business, which includes Waitrose supermarkets, during the winter months.
The Bank of England, which last month announced a recession more than a year from this autumn, has the first opportunity next week to consider the impact of the potential energy price guarantee on its interest rate decisions.
It is expected that inflation expectations will be at least close to its lowest due to the fact that energy subsidies, which will also be extended to businesses, will mean that bills will not reach the highs that are due in the coming months.
However, economists are still predicting that the Bank will increase the rate by a further 50 basis points to 2.25% to try and keep a lid on core inflation.
That would add to the burden of hunting and subprime mortgage holders, allowing those households to spend less in the broader economy.