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 -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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Jul- 2025 -29 July
Family food bills rise as shop price inflation hits 0.7%
Shop price inflation rose to 0.7% in July, up from 0.4% in June, according to the British Retail Consortium (BRC). The latest figures from the Shop Price Monitor, which was formerly known as the Shop Price Index, show inflation running above the three-month average of 0.3%. Food inflation reached 4%…
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28 July
BRC welcomes Lords’ changes to Employment Rights Bill
The British Retail Consortium (BRC) has welcomed amendments put forward by the House of Lords to the Employment Rights Bill, describing them as “positive, practical and pragmatic” steps to protect local, flexible and part-time jobs. Key changes proposed by peers include turning a right to guaranteed hours into a right…
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25 July
Retail sales jump 0.9% in June
Retail sales volumes rose by 0.9% in June 2025, according to the Office for National Statistics (ONS), following a revised 2.8% decline in May. Food store sales increased, with retailers attributing the rise to warm weather after a fall in May. Over the quarter, sales volumes were up 0.2% in…
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24 July
Consumer confidence dips in July as inflation bites
Consumer confidence dipped in July as inflation and economic contraction weighed on household sentiment, new figures from the British Retail Consortium (BRC) show. According to the BRC-Opinium Consumer Sentiment Monitor, expectations for the UK economy over the next three months fell to -33, down from -28 in June. Forecasts for…
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16 July
Inflation jumps to 18-month high of 3.6% in June
Inflation unexpectedly increased to a near 18-month high of 3.6% in June, driven by the rising cost of transport and food, according to the latest figures from the Office for National Statistics (ONS). The figure is the highest recorded since January 2024, when the rate was 4.0%. On a monthly…
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11 July
Economy unexpectedly shrinks 0.1% in May
Monthly real gross domestic product (GDP) unexpectedly fell 0.1% in May 2025, following an unrevised fall of 0.3% in April 2025 and growth of 0.4% in March 2025, according to the latest figures from the Office for National Statistics (ONS). Gross domestic product (GDP) rose by 0.5% in the three…
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1 July
Shop prices return to inflation as retailers struggle to shoulder costs
Shop price inflation increased to 0.4% year on year in June, compared with a decline of 0.1% in May, as retailers grappled with increases to minimum wage and employer national insurance costs. Furthermore, non-food inflation increased to -1.2% year on year in June, against a decline of 1.5% in May.…
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Jun- 2025 -20 June
Young adults lift UK consumer confidence despite economic concerns
Consumer confidence in the UK rose modestly in June, buoyed by optimism among younger age groups despite continuing concerns over inflation and global instability, according to new data from GfK. The research firm’s long-running Consumer Confidence Index increased by two points to -18, with improvements in views of the wider…
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