UK Retail Sales Post Surprise Fall as Rate Hikes Bite

  • Decline of 0.3% in October blamed on consumers cutting back
  • Pound falls as figures fuel bets rate cut could come by May
Shoppers on Oxford Street in central London.Photographer: Jose Sarmento Matos/Bloomberg
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UK retail sales fell unexpectedly in October, adding to the impression that a string of interest-rate hikes designed to beat down inflation is beginning to stymie economic activity.

The volume of goods sold in stores and online dropped 0.3%, the Office for National Statistics said Friday. That follows a downwardly revised 1.1% decline in September, when unusually warm weather held back spending on clothing.