Pound Goes Lower on Shop-Price Inflation & Retail Sales

The Great Britain pound weakened today after the report showed that the growth of the UK shop prices slowed and retail sales decreased in May.
British Retail Consortium reported that the retail sales posted an annual decline by 2.1 percent in May, following the growth by 5.2 percent in April. The shop-price inflation decreased to 2.3 percent in May from 2.5 percent in April.
Stephen Robertson, Director General, British Retail Consortium, explained the sharp drop of the retail sales:

After two previous months distorted by the later Easter and extra bank holiday, this is a more realistic reflection of how tough conditions on the high street really are.

As for the shop-price inflation, Robertson commented:

Recent volatility in the cost of key commodities, linked to dry weather and global demand, is now working through to the shop price of some food.

GBP/USD dropped to 1.6370 from 1.6442 as of 9:29 GMT today, while GBP/JPY fell to 130.77 from 131.66.

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