UK retail sales increased 1.7% MoM in January, a sharp upside surprise over the 0.3% MoM expected. The annual rate was 1.0% YoY vs 0.6% YoY expected.

• Ex-fuel sales were up even more at 2.1% MoM as fuel sales were down -1.2% MoM.
• Food sales surged 5.6% MoM, the largest monthly rise since March 2020.
• The rise in food sales was offset by a decline in non-food sales of -1.3% MoM composed of drops in clothing (-2.7% MoM), household goods (-1.7% MoM), and other non-food (-0.6% MoM).
• Non-store retail sales also saw a large increase, up 2.4% MoM.