Further evidence of the strength of the economic boom has been provided by the latest retail sales figures, which show a 13.2 per cent rise in the value of sales last November, compared to the same month the previous year.
The detailed figures suggest the retail spending was very strong towards the end of last year. The value of sales in the three months to November was 11.1 per cent up on the same period the previous year and 2 per cent up on the previous quarter.
When the impact of price increases is excluded, the volume of sales figures still shows a strong trend, indicating that the bulk of the increases reflects higher amounts being sold rather than increasing prices to consumers. The volume of sales in November was 10.8 per cent up on November 1998, compared to a 9.4 per cent rate of increase the previous month.
The retail sales figures are the latest in a line of data supporting the view that the economy grew very strongly in the final months of last year. Exports grew strongly in late 1999, according to the latest available data, while an increase in the rate of inflation reflected strong demand, as well as higher import prices.
The latest consumer price index figures for December showed an annual inflation rate of 3.4 per cent, the highest in the EU, and forecasters expect further increases in the months ahead.
Meanwhile, wholesale price figures published earlier this month showed factory-gate prices are also increasing more rapidly.
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