The British are spending less on food, as rising prices are forcing them to downsize their weekly grocery store, according to the latest official figures.
The National Statistics Office (ONS) said smaller grocery bills were the main factor in the 0.5% drop in retail sales in Britain last month.
However, department stores and household goods outlets also reported a reluctance on the part of consumers to spend as a result of the rising cost of living.
The UK statistics agency said the 1.6% decline in food sales volume appeared to be linked to inflation, which, as measured by the consumer price index, reached a 40-year high of 9.1% in May.
Retail sales growth in April was also revised downwards from an original estimate of 1.4% to 0.4%, while in the three months to May, a better guide of the underlying trend that the figures of a single month, spending fell by 1.3% over the previous one. quarter.
The ONS said the drop in retail sales was most pronounced when excluding motorists ’spending on petrol and diesel. Thus, retail sales fell 0.7% in the month and 1.5% during the quarter.
Heather Bovill, ONS’s deputy director of surveys and economic indicators, said: “Retail sales fell in May due to declining food sales. Supermarket comments suggested that customers they spent less in their grocery store due to the rising cost of living.
“It is possible that more workers returning to the office have helped increase fuel sales this month, while shoppers buying dresses for the summer holidays helped increase clothing sales.
“These rises were offset by falls in household items and department stores, and retailers in these areas reported consumer reluctance to spend due to accessibility concerns and higher prices.” .
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Lynda Petherick, leader of Accenture’s retail trade in the UK and Ireland, said falling sales would not come as a surprise to a retail sector facing rising costs and pressure to keep up. low prices for troubled households.
“Inflation remains a key issue for retailers, who have to contend with rising supply chain costs, as well as to keep their stores afloat and staff well compensated. For consumers, the increase of commodity costs means many don’t have too much money to spend on discretionary items, ”Petherick said.