Price increases outstrip consumer spending

The UK economy saw the slowest rate of growth since Q1 2016 in the first quarter of 2017, with prices increasing more than spending.

The latest figures from the Office for National Statistics showed that UK gross domestic product (GDP) was estimated to have increased by 0.3 per cent in Q1 2017, with the slower growth mainly due to services, such as retail sales.

Services grew by 0.3 per cent in Q1, compared with a growth rate of 0.8 per cent in the previous quarter.

Retail sales and accommodation were the main contributors to the negative growth in this sector, which were both impacted by price increases.