Pound dropped to a 37-year low against dollar

Sterling fell by over 1% compared to the dollar to $1.1351 at one point, which is the lowest since 1985, after the latest retail figures fell by 1.6% in August.
This drop came at a point when UK inflation is at a 40-year high, despite falling to 9.9% from July's 10.1% and the Bank of England predicted the UK will be into recession towards the end of this year.
The government declared the Energy Price Guarantee last week to help people with energy bills, which will limit the annual energy bill for a regular household to £2,500 for 2 years.
The drop in retail sales is since the summer of 2021 when all Covid restrictions were released, but the drop in August was the biggest month-on-month drop since December 2021.
The proportion of retail sales online fell to 25.7% in August, which is above pre-pandemic levels.
Sales of food, online, non-food, and fuel fell and supermarkets' sales volumes also fell by 0.9% but alcohol and tobacco sales grew by 6.3%.
In August, department stores saw a big decline of 2.7% in sales, while sales in clothing shops fell by 0.6%.

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