LONDONOct 21 – UK retail sales volumes fell a more than expected 1.4% on a monthly basis in September, according to official data on Friday, as consumers reacted to higher prices.

September’s data was also affected by a special holiday for Queen Elizabeth II’s funeral, during which many shops were closed, according to the Office for National Statistics (OUNCE ).

Economists expect retail sales to fall 0.5%.

Excluding auto fuel, sales were down 1.5% from August.

Consumers have been holding back spending with inflation hitting 10% and also face the prospect of a further decline in their purchasing power in 2023 after Finance Minister Jeremy Hunt abandoned the plan. The previously planned tax cuts by Prime Minister Liz Truss, who announced her resignation on Thursday.

A survey released overnight showed that consumer confidence remains near a record low as households respond to a combination of high inflation and chaotic British politics.

Some of the retailers include Tesco, the UK’s largest supermarket group, and an internet fashion company ASOShave warned about the prospects for a profit this month as they grapple with rising energy and personnel costs and a weaker pound.

YoY, total sales volume decreased by 6.9%, according to OUNCE.

Another report published by OUNCE showed that Britain borrowed £20.01 billion ($22.37 billion) in September, more than the £17.1 billion species valued in a Reuters poll of economists.

Hunt will try to show investors he can improve public finances when he presents his budget plan on Oct. 31, which is expected to include spending cuts and possibly new tax hikes.

(US$1 = £0.8945)