British retail sales rose by 0.5% in August from July, official figures showed today.
A Reuters poll of economists had mostly expected that retail sales volumes would increase by 0.3%.
Many households are feeling the squeeze from inflation which stood at 3.8% last month with food prices rising faster.
Earlier today, market research firm GfK said consumer confidence dipped in September and the prospect of tax increases in finance minister Rachel Reeves’ budget in November threatened to damage confidence levels further.
Recent updates from big UK retailers, including Primark owner Associated British Foods and discount supermarket Aldi UK, have also shown concerns that speculation about tax rises could hit consumer spending.
Fashion retailer Next said yesterday it expected its second-half sales growth to slow, partly blaming a weakening jobs market.