Retail sales rise slower than expected, hits pound

Retail sales rise slower than expected, hits pound

British retail sales rose by 0.1 percent in July – below analysts expectations – according to official data released today.

July’s figures bring overall growth for the year up to 4.2 percent.

Excluding fuel, sales rose 0.4 percent on the month and 4.3 percent compared to a year ago, as expected.

The release of the figures caused sterling to fall against both the dollar and euro. Sterling fell half a percent to $1.5607 from $1.5662 before its release and against the euro, it fell 0.7 percent to 71.42 pence.

Inflation also edged up by just 0.1 percent in July, numbers showed on Tuesday. This week’s figures have eased the pressure the Bank of England to raise rates in the near future.