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Gloucestershire Business News

Retail sales fall as cost of living crisis hits

UK retail sales were down last month, as the rising cost of living hit consumer spending, according to the latest figures.

Data from the Office for National Statistics (ONS) shows that online sales fell sharply, as people cut down on non-essentials, as reported by the BBC.

Fuel sales also dropped, as people reduced travel following record diesel and petrol prices. Food sales fell for a fifth consecutive month.

Overall, retail sales were down by 1.4 per cent in March, and February's sales figures were also revised down.

The cost of living crisis is being driven by big rises in energy, fuel and food prices, with inflation running at seven per cent - its highest level for 30 years.

Energy and fuel prices were already rising before Russia's invasion of Ukraine, but the conflict has pushed them up further.

The biggest fall in the March retail sales slide was from the drop in online sales, which have been going down from pandemic highs, after Covid restrictions eased. The figures suggest people are cutting down on their spending on consumer goods so that they can afford food and fuel.

Spending is likely to reduce further in the coming months, as the March data predates April's big rise in utility bills.

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