Cai Macro: The strong momentum in UK retail sales in May is unlikely to continue.

Katie Hoover, chief economist at Kaitou Macro, said in a report that UK retail sales showed unexpectedly strong performance in May, but this resilience is unlikely to continue. Sales volume increased by 1.2% compared to April's 1.0% decline. Gregory said: "Even if the US-Iran agreement is maintained, inflation is expected to rise further - possibly reaching around 4.0% - and retail sales will still weaken later this year." She said that consumer confidence in June was flat compared to the low level, indicating that total sales volume will decrease by about 2.0%. She added that in fact, the expected rise in inflation and unemployment rate this year is consistent with the trend of retail sales volume, which slowed from a 3.2% increase in May to a 1.0% decrease year-on-year.