UK retail sales volumes declined by 0.5% month-on-month in May

Jason Hollands, Managing Director at Evelyn Partners, the wealth management and professional services group, comments:

"The latest retail sales data, released today, serves as yet another reminder of the difficult economic climate the UK faces as rising prices hit consumers disposable income. The data showed a month on month drop of 0.5% in sales volumes in May – admittedly not quite as bad as expected – but was nevertheless the third monthly decline in the last four months.

"The biggest decline was in food sales, a sign that soaring food prices -  driven higher by the war in Ukraine - are prompting people to economise and think more carefully about what they put in their shopping trolleys. With inflation now expected to reach 11% in the autumn, the pain is unfortunately going to worsen before it gets better.

“The hope of tax personal tax cuts arriving any time soon to partially alleviate the cost of living squeeze also appears to be fading given the revelations this week that inflation has sharply driven up the interest costs on the UK government’s debt pile.  The Chancellor is therefore caught between a rock and a hard place, with no easy options."