Bank of England chief warns of further interest rate hikes if firms raise prices – business live

Andrew Bailey appeals to businesses to avoid price rises because higher inflation ‘hurts least well-off in society’

The jump in retail sales came as consumer confidence improved slightly. GfK’s consumer confidence index rose by two points to -36 in March.

Joe Staton, client strategy director at GfK, said:

A small improvement in the overall index score this month masks continuing concerns among consumers about their personal financial situation. This measure best reflects the financial pulse of the nation and it remains weak, with the figure for the coming year down three to -21 and an unchanged score for the past 12 months of -26.

Forecasts that headline inflation will fall this year have proved premature, given Wednesday’s announcement of an unexpected increase. Wages are not keeping up with rising prices and the cost-of-living crisis remains a stark reality for most.

The UK is finding its shopping habit hard to kick it would seem. Retail sales volumes have come in stronger than expected for the second month this year despite the cost of living squeeze.

But beneath that headline, there’s clear evidence that shoppers are being careful with their money. Growth in non-food sales was driven by discounters and second hand shops, while the rise in food volumes is attributed to people choosing to eat in and avoid pricey meals out. Shoppers may be more willing to spend, but only when there’s a bargain to be had.

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