Signs of early Christmas shopping as inflation spike threatens household budgets

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Retail sales rose for the first time in six months during October, according to official figures, suggesting shoppers started their hunt for Christmas gifts early as pressure intensifies on household budgets.

The Office for National Statistics (ONS) reported a 0.8% increase in volumes last month compared to September – with clothing among categories leading the way.

It said that fashion sales were just 0.5% below pre-pandemic levels, adding that “some retailers (were) suggesting that early Christmas trading had boosted sales.”

Non-food led the growth more generally amid warnings about product availability in some quarters, though fuel sales were down sharply to normal levels – a consequence of the end of the panic-buying saga that was prompted by a reaction to a shortage of tanker drivers to deliver supplies.

Online sales fell to lows not seen since the start of the pandemic, according to the ONS data, which will give some comfort to physical stores ahead of their busiest season of the year.

The figures are important as they are a big barometer of the economy, which is dominated by consumer spending in the UK.

It suggests some momentum after the last set of growth figures revealed a slowdown as rising costs, linked to global supply chain woes and labour shortages, were having a negative effect across the economy.

Figures this week showed the rate of inflation hit its highest level for almost a decade in October – led by surging fuel and household energy costs.

The ONS figures were released as a closely-watched measure of consumer confidence edged up for the first time in four months, despite the leap in living costs.