14 August, 2008

According to the figures from the British Retail Consortium (BRC), after the declaration of the like-for-like retail sales down by 0.9% as compared to the July 2007, consumers are planning to continue leash in their spending.

However, sales of food and drink were positive, but against feeble sales compared with the last year.

The BRC described it as 'erky shopping offs the program' after profound store discounts unable to draw the attention of the consumers to spend money.

The BRC reveals that results show that there has been negative like-for-like sales expansion for the fourth time in five months.

Between May and July, like-for-like sales dropped 0.3% for the same period in 2007 and the BRC consider the downfall is set to continue.

As a result of the constantly increasing bad credit status among UK households, they are planning to cut down their rates on spending. An increasing mortgage payment, together with the continuous rise in food and fuel costs is putting the UK households under financial strain.

The BRC reveals that the reports show that families feel much inferior by cutting down their rates on spending and are only buying necessary items. Spending on furniture and other household items had stroke hardly.

The news from the BRC follows news that the UK's annual rate of inflation has rush forward to an increase record of 4.4% in July. Inflation is now at peak since current records began in 1997.
The figure is at top from 3.8% in June and is more than double the Government's target of 2% and above the predictions of 4.2%.

An increase in the Consumer Prices Index (CPI) was also greater than expected, with food prices up a record 13.7% on the year, primarily due to rolling meat prices, in particular bacon, pork and poultry. Meanwhile, petrol prices have fuelled inflation as the data was collected prior to the recent drop in oil prices.

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