Julian Jessop, IEA Economics Fellow, has given his thoughts on recent statistics released by the ONS, showing that retail sales have increased by 0.8% in the month of October. Online retail sales however, were down, suggesting a rush to the high street in the build up to Christmas.

Julian argued that despite this seeming positivity, that this could be evidence of consumers completing their shopping now before inflation and high taxes hit.

“The Government therefore needs to focus on supporting the economic recovery – which remains the best way to repair the public finances – rather than adding even more to the tax burden.”

“The Bank of England also needs to ensure that a temporary increase in inflation does not become permanent. A small rate increase in December would not derail the recovery, but would show the Bank is serious about keeping inflation down over the medium term.”

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