British retail sales numbers were reported for the month of August. The volume of sales decreased 0.2% from July. There was no growth in the value of retail sales over the same period. For the year, retail sales saw no growth in volume between August 2010 and August 2011. Retail goods accounted for GBP25.4 billion of total sales, up from GBP24.3 billion from August 2010. The upward pressure on retail sales came from non-store retailing. Automotive fuel increased by 1.6%. Downward pressure came from non-food stores which decreased by 1.2%. The decrease was lead by household good stores.
The Bank of England inflation survey for August 2011 shows that the public perceives the current annual rate of inflation at 4.8% up from 4.5% in May.
The Euro zone inflation rate held steady in August at 2.5%, same as July. The reasons cited were the ongoing debt crisis and the declining costs of energy. European Central Bank President Jean-Claude Trichet took a dovish approach during the ECB press conference and called inflation risks “broadly balanced.” The European unemployment rate held at 10% in July as governments continue to cut public sector jobs and implement austerity measures.
The EUR/USD is heading higher after
Eugene Ross, Analyst
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