Thursday, December 17, 2009
Retail sales slip, inflation expectations steady
Posted by David Smith at 10:30 AM
Category: Thoughts and responses

After strong weekly readings from John Lewis and others, the 0.3% drop in retail sales volume last month was a surprise, partly offset by an upward revision to the October numbers. Even so, sales are 3.1% up on a year earlier, and should be boosted by some pre-VAT rise spending this month. More here.

Meanwhile, I'm never sure what value to place on the Bank of England's quarterly inflation expectations survey but for what it's worth, expectations for the next 12 months were steady at 2.4%. Suspicions about this survey arise from the fact that people think inflation is currently 3.2% and fewer than half think interest rates have fallen over the past 12 months. More here.