Retail sales bounce back across Great Britain

AI desk brief

UK retail sales unexpectedly rose 0.5% m/m in August versus forecasts for a 0.2% decline, rebounding from a 0.5% fall in July. The stronger consumer data, alongside August CPI at 3.1% and the BoE’s warning that higher energy prices from the Iran-related conflict may force another rate hike, points to firmer UK yields and a potentially less supportive macro backdrop for precious metals in the near term.

The ONS said sales were up 2.4% y/y over the summer three months, helped by hot weather, back-to-school demand and a 1.7% m/m gain in non-store retailing. Fuel sales fell 1.7% in August as petrol prices hit a four-year high, underscoring the inflation impulse from the Middle East energy shock.