Weaker than Expected UK Retail Sales Send Cable into the Red
THE TAKEAWAY: UK February retail sales weaker than expected -> UK struggles with inflation outpacing wage growth -> Cable plummets on weak data
Retail sales in the UK fell 0.8% this past February, the British stats office said today. The drop was steeper than the 0.5% decline predicted by economists. Cable sold off on the news.
As Exchequer Chancellor George Osborne wrangles with political opponents about a proposed scrapping of the UK top tax bracket in the UK budget set for release this week, the Bank of England yesterday warned of “substantial, clear” inflation risks in the short term as political tensions continue to boost oil prices and erode consumer confidence. The BOE continues to attempt to juggle lagging growth with inflation risks.
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