Economic Buzz: UK retail sales rise 2.9% in August amid inflation pressure

UK retail sales grew 2.9% year-on-year in August 2025, up from July?s 1.8% gain, marking the strongest growth in four months. The increase was driven mainly by higher food prices, with food sales up 4.7%, while non-food sales rose just 1.8%. Warmer weather also boosted demand for food, furniture, and back-to-school items. Despite the positive figures, the BRC warned that retailers remain cautious due to weak consumer confidence ahead of Christmas.

Powered by Commodity Insights