The BRC said the Bank of England was wrong to regard the consumer slowdown as “tentative”, pointing to recent reports from several major retailers that it believes show a slowdown is already happening and is likely to intensify.
BRC director general Kevin Hawkins said: “This could well be an increase too far.
“The effects of the recent, quick-fire series of rate rises are now beginning to be felt. It’s clear there is more impact which has yet to feed through to sales and consumer confidence.
“With disposable income growth at record lows, saving slumping and customers struggling to meet rising household bills, the squeeze is tightening.
“Food inflation is now falling and non-food prices are down every month this year.
“It’s clear inflationary pressure is not coming from the high street. This rise could cause too great a slowdown, the full effects of which will only be felt in the second half of this year.”
