Pound Jerked! UK Retail Sales Fall

<p>&nbsp;UK retail sales unexpectedly contracted in July after being hit by weak spending as cold weather and rain kept people from shopping.</p><p><br /></p><p>Most recently, the Office for National Statistics (ONS) reported total retail sales fell by 1.2% last month from the 0.6% increase recorded in June.</p><p><br /></p><p>The figure also missed expectations for a 0.6% contraction, while on an annual basis it fell by 3.2%.</p><p><br /></p><p>This was the first contraction in retail sales recorded since March, when sales declined for both food and non-food reflecting the effects of weather and cost pressures.</p><p><br /></p><p><br /></p><p>In addition to the uncertain weather in Britain, consumers were also affected by inflation which remained high at 6.8% in July as well as aggressive interest rate hikes by the central bank of England (BOE).</p><p><br /></p><p>The pound lost 0.2% to 1.2720 against the greenback immediately after the data was released.</p><p><br /></p><p>The latest retail sales reading came in contrast with stronger-than-expected reports for economic growth, wages and inflation in the UK last week.</p>