Inflation hits 27-year low
Retail sales also slow
July 16 2002
The prospect of a UK interest rate rise has receded again after new figures indicated consumer spending is slowing.
Lower food and petrol prices, and and discounts on clothing and footwear, saw inflation fall by 0.1 per cent in June, the lowest rate for 27 years, according to Government figures.
Meanwhile, British Retail Consortium figures showed like-for-like sales growth of 4 per cent year-on-year in June. However, sales growth in the three months to June was down 3.1 per cent year-on-year after hitting a 7.5 per cent in March.
Bridget Rosewell, chief economic adviser to the BRC, said: “Looking at the trends, it seems likely that consumers are becoming more wary than during last year and the current batch of economic bad news can only support this trend.”
