UK retail sales dropped by 1.8% in March marking the largest year on year decline since 2010 and exceeding economists’ predictions of a 0.5% decline.
Coinciding with the rise of inflation, the volume of goods sold in store and online fell 1.4% in the first quarter of the year. The Office for National Statistics (ONS) reported it as the first quarterly decline since 2013.
Average store prices increased 3.3% in the year to March, the highest rate of increase since March 2012.
Kate Davies, a ONS statistician, said that the sales weakness “seemed to be a consequence of price increases across a whole range of sectors.”
The increase in prices is expected to have an effect on volumes growth in the short term.