Euro Zone Retail Sales Plunge in August as High Inflation Dents Consumer Spending

Euro zone retail sales fell 1.2% month-on-month in August, much more than the 0.3% decline expected.

The drop was mainly due to a 4.5% fall in online and mail order sales and a 3.0% decline in petrol sales.

Year-on-year, retail sales were down 21% in August, compared to a forecast 1.2% decline.

The steepest year-on-year declines were in fuel (7.7%) and food, drinks and tobacco (3.2%).

High inflation, at 5.3% in August, is likely weighing on consumer demand and retail spending.