According to the UK Bureau of National Statistics, retail sales in December 2022 decreased by 5.8% compared to the same period in 2021. This was a record drop in the entire history of observations since 1997. According to the ONS, retail sales in Britain have declined for the second month in a row. In December, they unexpectedly fell by 1%, which is twice as much as the 0.5% predicted by analysts. In November, the drop was also 0.5%. The State Bureau also reported that the sales volumes recorded in December were 1.7% less than in February 2020 before the outbreak of the coronavirus pandemic. Total retail sales fell by 3% between 2021 and 2022. Analysts note that after the start of the special operation of the Russian Federation in Ukraine, the West increased sanctions pressure on Russia. As a result, the disruption of logistics chains has led to an increase in fuel and food prices in Europe and the United States. In the UK itself, the rising cost of living has hit millions of households. Recall that the Bank of England raised the base interest rate by 50 basis points – from 3% to 3.5%. The regulator also announced the beginning of a recession in the country, which will last the whole of 2023 and the first half of 2024. Annual inflation in the UK at the end of December was 10.5%.
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