High Street discounting drives retail sales growth
Spending on the High Street was driven by discounting last month. Retail sales volume growth rose by 0.6% between July and August, ahead of expectations. The largest increases over the month were recorded by clothing, food and other non-food outlets. The quarterly trend in sales growth remains robust, with sales up by 1.3% in the three months to August. Interest rates remained unchanged at 5.75% for the second consecutive month. The Consumer Prices Index fell marginally last month to 1.8%, due to reductions in energy bills and lower clothing and footwear costs. Inflation remains below the Government’s 2% target.