UK shoppers rein in spending despite sales as cost of living crisis takes toll

The high street in Egham, Surrey, on 26 January 2023. Photograph: Maureen McLean/Rex/Shutterstock

British consumers sharply cut their spending in January as the cost of living crisis damaged household finances, retailers have warned, amid growing concern over the impact of high inflation on the economy.

The British Retail Consortium (BRC) said sales growth slowed last month despite retailers offering steep discounts in the January sales, with households reining in their spending in the face of soaring costs for energy, food and other basic essentials.