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UK’s weak retail sales figures signal recession

Retail sales in the UK dropped by 5.8% in quantity year-on-year in June, according to official figures released on Friday, feeding fears of recession.

They also dropped 0.1% monthly, after an earlier decline of 0.8% in May, announced the Office for National Statistics (ONS).

During the second quarter of the year, retail sales decreased by 5.5% on a yearly basis.

They increased by 4.4% year-on-year both in the second quarter and June as a result of inflation hitting a 40-year high of 9.4% that month.

In a bid to curb inflation, the Bank of England raised its policy interest rate from 0.1% to 1.25% overall in December-June.

The country’s aggressive moves have caused concerns about recession and stagflation.

Source: Anadolu Agency