3 fears decline in British retail sales 3.7% .. the largest since the close of 2020

Britain’s retail sales fell last month, with consumers buying less as the omicron mutated from the coronavirus spread.
And the National Office of Statistics in Britain stated, yesterday, that the volume of goods sold through stores and electronic shopping platforms decreased in December by 3.7 percent compared to the previous month, in the largest decline since the closure, which was imposed in the country in January (January). 2020 to control the Corona pandemic.
Economists had expected UK retail sales to fall 0.6 per cent. When excluding auto fuel sales, retail sales fell 3.6 percent.
And Bloomberg News reported that these data show the impact of the new variable on consumer spending. Despite the easing of restrictions to control the pandemic, fears of increased inflation, higher interest rates and taxes will continue to pressure consumers’ incomes this year, affecting their ability to spend.
The annual inflation rate in Britain during December reached its highest level in three decades, driven by the rise in the prices of clothing, food and furnishings. The annual rate reached 5.4 percent last month, after it recorded 5.1 percent in November, due to a significant increase in fuel prices, according to data from the National Bureau of Statistics.
The percentage is the highest since March 1992, when it reached 7.1 percent.
The world’s economies are facing the highest levels of inflation in decades that forced central banks to raise interest rates, including the Bank of England, which raised its main interest rate last month.
“The level of inflation rose again at the end of the year, and it has not reached a higher level than that in nearly 30 years,” said Grant Fetzer, chief economist at ONS.
“Food prices have risen dramatically again, while the rise in furniture and clothing prices has led to a rise in the annual inflation rate,” he added.
In addition, the British government backed plans to build an electric car battery factory that is expected to employ 3,000 people and create another 5,000 jobs.
The government’s Auto Replacement Fund supports British Volt’s plans to build a plant in Blythe, Northumberland, BA Media reported yesterday.
The amount of financial support from the government has not been announced, but it is believed to amount to about 100 million pounds (13 million US dollars).
The company said the plant would need £3.8 billion to set up and start production, with construction alone costing £1.7 billion.
The plant is expected to have a production capacity of 300,000 batteries per year, supplying about a quarter of the current UK market.
The labor market in Britain is witnessing strong growth despite the increase in infections with the Corona virus late last year, with the number of vacancies rising to a record level of 1.25 million jobs in the last quarter of the current financial year, and an unexpected decrease in unemployment.
Data from the Office for National Statistics showed that those on corporate payrolls rose by 184,000 people in December, a stronger-than-expected pace.
Britain’s unemployment rate fell to 4.1 percent in the third quarter, which ended in November, the best rate since June 2020. Taken together, the data point to a strong economy, which may encourage the Bank of England, “the Bank of England”. To continue to focus on inflation.
Central bank policy makers raised interest rates last month, which was the first time during the pandemic, and investors expect another step during an upcoming meeting on February 3, as inflation threatens to exceed 6 percent this year, three times the target.
“Assuming the pandemic-related restrictions are lifted soon, perhaps next week, the labor market could become more active, which validates the Bank of England’s hawkish stance the day before,” said Yael Selvin, chief economist at KPMG Britain, an accounting and consultancy firm. birth”.