Economy
The latest news, updates and analysis on the economy and how it is affecting the UK retail industry. Sign up to the Daily Briefing and let Retail Sector’s business journalists keep you in the picture.
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Aug- 2025 -26 August
Royal Mail and DHL halt some US deliveries ahead of tariff changes
Royal Mail and DHL have suspended or restricted certain postal services to the United States ahead of new US customs rules that come into force on 29 August. The move follows an executive order by the US government that removes the current $800 (£594) “de minimis” threshold, under which most…
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26 August
Shop price inflation hits 18-month high in first week of August
Shop price inflation increased to 0.9% year on year in the week ended 7 August, an 18-month high, according to data from the British Retail Consortium. This increase came against growth of 0.7% in July and was above the three-month average inflation of 0.6%, driven by price hikes across butter,…
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21 August
Consumer sentiment improves slightly but remains in ‘doldrums’, BRC finds
Consumer expectations for the next three months improved marginally in August but remain historically low, according to the latest data from the British Retail Consortium (BRC) and Opinium. Expectations for the state of the economy rose slightly to -32, up from -33 in July. Views on personal finances also improved…
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20 August
Inflation jumps more than expected to 3.8%
Inflation rose more than expected in July, rising to 3.8%, the highest rate in 18 months. On a monthly basis, it rose by 0.1% last month, compared with a fall of 0.2% in July 2024. This was up from 3.6% in June, and means that inflation is almost double the…
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14 August
UK quarterly GDP beats expectations despite slowdown
UK GDP grew 0.3% in the three months to June, behind the 0.7% it grew in the first quarter, as a result of US tariffs and higher business costs, according to data from the Office for National Statistics (ONS). However, it is better than expected growth as economists polled by…
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13 August
Number of retail job vacancies lower than pre-pandemic, ONS finds
The number of job vacancies in the wholesale and retail trade; repair of motor vehicles and motor cycles category fell by 10,000 in Q2, the highest volume decrease of any category, according to data from the Office for National Statistics (ONS). This category also has 37,000 fewer vacancies than its…
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12 August
Retail sales up 2.5% in July despite job losses and store closures
Retail sales in the UK rose 2.5% in the four weeks ended 2 August against a growth of 0.5% in July 2024, according to the latest data from the British Retail Consortium (BRC). As part of this increase, food sales rose 3.9% year-on-year in July, beating a tough comparative of…
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8 August
Footfall declines in July for second consecutive year
UK footfall fell by 0.4% year on year in July, according to data from the British Retail Consortium–Sensormatic IQ, marking a second consecutive year of decline for the month. The figure was a slight improvement on June’s 1.8% fall. High street footfall declined by 1.7%, compared with a 3.0% drop…
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7 August
Luxury loses momentum as midmarket braces for impact, Colliers finds
Luxury and midmarket retailers across EMEA are recalibrating strategies in response to a cooling post-pandemic retail environment, according to a report from Colliers. Colliers found that after years of price-led growth, luxury retail is showing signs of fatigue. Brands such as Kering and Chanel reported revenue declines in 2024, while…
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7 August
BoE cuts interest rates to 4%
The Bank of England (BoE) has cut interest rates to 4%, down from the previous rate of 4.25%, marking the fifth rate cut since last year’s peak of 5.25%. At its meeting today (7 August), the bank’s monetary policy committee (MPC) voted by a majority of 5 to 4 to…
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