Retails sales hit a 7 year low for the first quarter of the year, owing to the rising cost of living that adversely affected the disposable income of citizens.
The ONS (Office for National Statistics) noted a decline of 1.4% in sales over a period of 3 months, the lowest since 2013. The reason has been attributed to overall price increase across all sectors, without any single sector being responsible.
A marginal increase in sales was seen in clothing, footwear and textile sectors whereas on the other hand, fuel and household goods sales witnessed the largest decrease in sales.
The rise in manufacturing costs and subsequently in everyday goods prices has negatively affected sales and all this is the impact of the Brexit referendum.
The initial surge in spending post Brexit ended abruptly with stagnant pay growth, no growth in employment, although unemployment remains low.
All this is a sign of expected economic slowdown in the UK.