16.11.201723:01:00UTC+00UK Retail Sales Decline Year on Year in October

UK retail sales dropped for the first time since March 2013 in the 12 months to October, according to official data. Rising food inflation and uncertainty regarding the outlook for the UK economy appears to have sent retail sales to decline.

According to data from the Office for National Statistics, the quantity of goods excluding auto fuel purchased by consumers dropped 0.3 percent compared to the same month in 2016.

The month on month statistics was better, total volumes increased 0.3 percent, or 0.1 percent excluding the volatile automotive fuel component.

However, the monthly rise failed to offset September's 0.7 percent drop from August and uninspiring spending over much of the year.

Analysts have pointed to the recent mild weather as a dampener on winter clothes sales and food inflation, which reached four percent month on month, as significant elements depressing retail sales.

According to a survey by credit card provider Visa, consumer spending contracted by two percent in October, the quickest year-on-year drop in four years and the fifth monthly decline in six months. The report noted that the fall was propelled by a five percent decline in spending on the high street.

The mixed reading comes as quickly rising prices have crimped disposable incomes. According to the ONS, average prices at food stores rose 3.5 percent from the previous year. Growth was slower for non-food stores, which reached a growth of 2.5 percent.