UK high street sales stagnant amid January retail gloom

Consumer spending squeeze blamed for 0.1% rise with only gym kit and toys increasing

January was a tough month for high street retailers as sales rose just 0.1%, far below City expectations, as higher prices continued to deter shoppers from spending.

City analysts had expected a recovery of around 0.5% last month, after the unexpectedly sharp fall of 1.4% in December. The figures from the Office for National Statistics (ONS) indicate a pick up in year-on-year growth to 1.6% in January, from 1.5% in December, but analysts had hoped for a bigger turnaround after a very disappointing end to last year.

Inflation is when prices rise. Deflation is the opposite - price decreases over time - but inflation is far more common.

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