The UK economy was dealt a severe blow in March as retail sales fell 1.8%, the biggest drop in seven years.
Not only was the drop the biggest since 2010, it capped the weakest quarter since 2013.
“This is the first time we’ve seen a quarterly decline since 2013, and it seems to be a consequence of price increases across a whole range of sectors,” said the ONS.
Inflation is being blamed for the drop in consumer activity as the rising cost of everyday goods is reducing household spending power.
“Families are facing the fastest rise in living costs for over three years and they are reining in their spending rapidly,” Richard Lim, of the Retail Economics consultancy said to Reuters.
The large drop suggests economic weakness could be finally creeping in after the UK remained robust after the decision to leave the UK last June.
In a immediate reaction, the pound fell 40 pips against the dollar before recovering.
