Shoppers on a post-Brexit splurge — but will it last?

SHOPPERS opened their wallets with a vengeance last month, defying Brexit gloom and pepping up the pound in the City today.

The surprise 1.9% growth in retail sales was put down to colder weather triggering a rush for winterwear — pushing sales of clothing and footwear up 5.1% — as well as Halloween spending and the strongest growth in internet sales for five years.

The monthly rise mean annual sales are now growing at 7.4% — the fastest pace since 2002. The pound ticked half a cent higher above $1.25 at one stage as dealing rooms bet that the strength of the figures could hasten an interest-rate rise from the Bank of England.

Experts immediately questioned how long the shopping splurge will last, however, as the sweet spot for consumers from near-zero inflation fades away next year. The post-Brexit fall in the pound is set to push up prices across the board next year.

Scotiabank economist Alan Clarke said overseas tourists were likely to be taking advantage of the weaker pound.

He added: “Domestic residents may also be staying at home and spending here rather than booking a weekend away and taking a hosing on the exchange rate.

“It could also be consumers bringing forward spending to today, in anticipation of higher prices tomorrow.”