Sales on Britain’s high streets remained flat in July, as spending on food bolstered declining high street sales across all other main sectors.
The Office for National Statistics said retail sales volumes were static at 0.3% after revising the figures for June down to the same level, although the result still beat analysts’ expectations for a modest rise of 0.2%.
Strong food sales in stores at 1.5%, up from 1.1% a month earlier, helped to offset a decline elsewhere, according to Ole Black, senior statistician at the ONS. “Whilst the overall growth is the same as in June, trends in growth in different sectors are proving quite volatile,” he said.
The data come after the economy showed greater signs of resilience than feared, as the UK recorded its lowest level of unemployment since 1975 on Wednesday, with the unemployment rate at 4.4%. Earlier this week inflation remained static at 2.6%, thanks to falling fuel prices, alleviating some of the squeeze on real wages at a time when households are facing uncertainty from Brexit.
However, rail fares will rise by 3.6% from next year, after July’s retail price index came in higher than expected on Tuesday, leading the government to prepare the steepest hike in average ticket costs for five years.