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UK Outlook Dims With Consumers Paying More to Buy Less in Shops

  • Web discounts deliver unexpected boost in retail sales
  • Separate report shows government borrowing more than forecast
WATCH: UK retail sales saw a surprise gain in July. Lizzy Burden reports.Source: Bloomberg
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Britain’s surging inflation rate is forcing consumers to pay more for the same amount of goods, underscoring a dimming outlook for the economy.

Retail sales volumes unexpectedly rose 0.3% last month, but the cost of those sales increased more rapidly by 1.3%, the Office for National Statistics said Friday. The volume gains came from a 4.8% surge from web-based stores, which offered discounts and promotions to draw in customers.