UK shoppers slash spending as price rises and energy bills bite

theguardian.com:

UK consumers sharply cut back their spending in February as soaring living costs damaged household finances, retailers have warned, despite strong sales of jewellery and fragrances for Valentine’s Day.

Highlighting the impact of the cost of living crisis on the economy before Jeremy Hunt’s budget next week, the British Retail Consortium (BRC) said sky-high energy bills and the rising cost of a weekly shop were forcing shoppers to cut back.

Total sales rose by 5.2% in February compared with a year earlier, up slightly from January’s annual growth rate of 4.2%. However, much of the rise was a result of high inflation pushing up the value of goods being sold, masking weaker sales volumes.

“Many consumers will be concerned as they prepare for further energy price and tax rises in April,” said Helen Dickinson, the chief executive of the BRC.

She warned Hunt that urgent steps were required in the budget to help retailers weather the economic storm without passing on large price increases to consumers.

“To protect people from ongoing price rises for goods, government must avoid additional regulatory costs on business that compromise retailers’ ability to invest in lowering prices and in other areas that would contribute to the UK’s economic recovery,” Dickinson said.

According to the latest snapshot of high street spending, price-sensitive consumers shopping around for Valentine’s Day gifts – including fragrance and jewellery – helped to prop up sales values in February. However, the volume of goods bought was down on a year ago.

Energy-saving appliances also continued to sell well, but the rush for warm coats and boots subsided after a splurge in the January sales fizzled out.

Separate figures from Barclays showed consumer card