In December, UK Retail Sales experienced a significant decline of 3.2% MoM, falling well below the anticipated -0.5% and the previous month’s 1.4%, as reported by the Office for National Statistics (ONS) on Friday.

The Core Retail Sales, excluding auto motor fuel sales, also recorded a substantial drop of 3.3% MoM, significantly missing expectations of -0.6% and trailing behind November’s 1.5%.

On an annual basis, Retail Sales in the United Kingdom contracted by 2.4% in December, sharply below the expected 1.1% and the previous month’s 0.2% growth. The Core Retail Sales saw a decrease of 2.1%, missing the anticipated 1.3%. The disappointing data is reflected in the GBP/USD pair, which remains in negative territory below the 1.2700 level following the downbeat UK retail figures.