FX.co ★ UK Retail Sales Growth Hits 5-Month High

UK retail sales rose 2.3% year-on-year on a like-for-like basis in January 2026, up from a 1% increase in December and marking the fastest pace of growth since August, as shoppers who had held back during the holiday season returned in force. The result also exceeded market expectations of a 1.2% rise, reinforcing signs of improving economic momentum following the late-2025 slowdown. Non-food sales grew 1.7% from a year earlier, above the 12-month average of 1.1%, while food sales increased 3.8%, broadly in line with their 12-month average. Commenting on the figures, BRC chief executive Helen Dickinson said a “drab December gave way to a brighter January as retail sales picked up pace,” noting that many consumers delayed Christmas spending and waited for January discounts. She added that in-store sales posted their strongest growth in more than six months.