Retail sales across Great Britain saw an unexpected 0.5% rise month-on-month in August, the Office for National Statistics (ONS) has reported. This increase defied analyst expectations of a 0.2% fall.
The August figures mark a rebound in consumer spending, following a 0.5% month-on-month decrease in July. The ONS noted that summer heatwaves contributed to increased sales of items such as fans, air-conditioning units, sports merchandise, and clothing over the three months to August.
Across the three-month summer period, sales rose by 2.4% year-on-year, exceeding forecasts of a 1.9% rise. Department stores recorded an 1.8% month-on-month sales increase in August, while non-store retailing, primarily online shopping, saw a 1.7% rise month-on-month.
However, fuel sales dropped by 1.7% in August and 2.5% over the three-month period. This decline is attributed to motorists reducing non-essential journeys following significant increases in petrol and diesel prices since the start of the Iran conflict in February.
The Bank of England's monetary policy committee voted to hold the base rate at 3.75% on Thursday. Despite this, the committee indicated that a recent surge in energy prices, linked to the conflict, may lead to a rate increase to manage inflation, which rose to 3.1% in August from 2.9% in July.