June 2012: retail sales volumes up 0.1% on the month, up 1.6% on the year
High street inflation slowed to only 0.3% in June 2012
Commenting on the retail sales figures for June 2012 published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: “Retail sales were up slightly in June but not as much as expected. This comes after a strong increase in May, and it is likely they were affected by the recent spell of bad weather.
The decline in high street inflation will support disposable incomes and consumer spending, which is crucial at a time when austerity measures and the eurozone crisis continue to put the economy under pressure.“However, the beneficial effects of low inflation must be accompanied by more policies to support the weak pace of growth. The Funding for Lending scheme and measures to boost infrastructure are welcome initiatives, but they must work on the ground. To enable businesses to create jobs and drive growth, we also need more forceful deregulation and moves towards creating a state backed business bank.”