// Retail sales across the UK were stronger than expected in January as Brits kept spending despite the cost of living crisis
// Despite rising 0.5% in January, sales were still 1.4% below their pre-covid-19 levels
UK retail sales rose unexpectedly last month after post-Christmas discounting brought people into stores.
Volumes rose by 0.5% in January, following a 12% drop in December, but sales volumes fell 5.1% compared with January last year, the Office for National Statistics (ONS) said.
Prices have been rising sharply since last year, mainly due to soaring energy costs, which has put pressure on millions of households across the nation.
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ONS director Darren Morgan said fuel sales rose in January, reflecting a fall in prices, and discounting helped boost sales for online retailers as well as jewellers, cosmetic stores and carpet and furnishing shops.
But clothing store sales fell back sharply having risen for four months and food store sales fell again as shoppers bought less due to the rising cost of living and high food prices.
Taken as a whole, retail sales volumes are still lower than pre-pandemic levels.
While the rate of inflation is starting to ease, at 10.1% it remains close to a 40-year high.
The ONS also said December’s fall in retail sales was steeper than previously estimated, as consumers cut spending.
ONS Director of Economic Statistics Darren Morgan said: “After December’s steep fall, retail sales picked up slightly in January, although the general trend remains one of decline.”
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