Retail sales rose by 1.1% during the month of July exceeding expectations.
This is the highest month-on-month rise since February and has beaten the forecasted rise by 0.7%. The increase is most likely on account of the largest drop in clothing and footwear prices for eight years. Sales for the year so far are also up 1.3% when compared with last years sales although government measures are likely to hit high street stores hard.
VAT is likely to rise to 20% come January while fears over unemployment and general cutback do not bode well for the coming year.