UK retail sales fell in July, weighed by declines in non-food and non-store
retailers, the ONS said. Department store sales fell 1.4% MoM,
textiles/apparel/footwear -2.7% MoM and non-store retail -3.6% MoM; food store
sales rose 0.5% MoM, helped by supermarket and alcohol/beverage promotions, hot
weather and the World Cup. Fuel sales rebounded 3.8% MoM after a 3.6% drop in
June. The ONS said some demand was pulled forward into June by
earlier-than-usual promotions. Overall sales remain relatively resilient; the
release is unlikely to materially alter BoE policy prospects, though inflation
remains the Bank's primary challenge.