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Investors remain cautious as retail sales jump 9.2%
Retail sales jumped 9.2%
Retail sales jumped 9.2% in April 2021 as all non-essential retail shops opened after months of having their doors closed due to Covid restrictions, according to official figures released on Friday (21 May).
The Office for National Statistics said clothing store sales did particularly well, soaring 69.4% as people rejoiced the return to the physical store. Automotive fuel retailers also reported strong growth of 10.6% as people were able to travel more. Food stores were the only sector to report a monthly decline of 0.9%.
However, while the numbers are impressive, experts warn they should be taken with a pinch of salt.
Jon Hudson, fund manager of Premier Miton UK Growth fund, said the inflation rate should continue to rise amid high consumer demand post-lockdown and supply challenges such as higher raw material costs, component shortages and increasing freight charges .
Quilter Investors portfolio manager Paul Craig argued the rise in inflation reflected a turning point in the UK s economic reaction to the coronavirus pandemic, with price growth now on an upward trajectory, and should remain so for some time to come .
He added that inflation may move markedly higher if the end of lockdown restrictions leads to a waterfall of consumer spending.