Retail sales have dropped for the third month in a row, new data suggests.

The Confederation of British Industry's (CBI) latest Distributive Trades Survey found that sales have been "poor" in August.

The latest report's headline retail sales balance hit -27% for the month, as significantly more retailers witnessed a dip in sales.

However, it did represent an improvement, following a balance of -43% in July.

Martin Sartorius, principal economist at the CBI, struck a hopeful note: "Although households seem to still be feeling the pinch from the cost-of-living crisis, firms should gradually begin to see some tailwinds from consumers' rising real incomes."

By Katie Williams and Brad Young, Money reporters

Half of young people are making the costly error of exchanging pounds for foreign currency at the airport instead of sorting it before their trip, a new survey has found.

Research from Compare the Market found that nearly three in 10 holidaymakers (28%) have opted for a currency exchange just before their flight - including more than half of people aged 16-24 (51%).

Those aged over 55 (12%) were more prepared, with most exchanging currency elsewhere.

Meanwhile, more than one in five people (22%) said they withdrew money from a cashpoint or bank during their last holiday abroad and were charged a fee, rising to 26% of 16 to 24-year-olds and a third of 25 to 34-year-olds.

Guy Anker, money expert at Compare the Market, said buying currency at the airport is a "big no-no".

Earlier this year we spoke with three travel experts to find out when, where and how to pay abroad to make your money goes as far as possible...

CREDIT CARD

"The cheapest way to spend overseas is often on plastic, if you've got the right plastic," said James Jones, head of consumer affairs at Experian.

"Using credit and debit cards can be a great way to get the very best exchange rates."

He said rates offered by currency exchange shops are usually "much less attractive" than those offered on some cards, which were much closer to the rates the banks use themselves.

Fees could wipe out any gains

But it's essential to be aware of things like non-sterling transaction fees, cash withdrawal fees and credit card interest.

So shop around for a card with travel rewards, Mr Jones said - and do this before your trip.  

"You probably need to give yourself, ideally, six weeks."

Extra protection

When you book a trip between £100 and £30,000, try and pay for some of it on a credit card to get "extra protection" under Section 75 of the Consumer Credit Act, said Mr Jones.

That means the card provider is jointly responsible with the retailer if something goes wrong, such as arriving at a hotel only to find it has closed down.

If you are using a credit card, make sure you can pay it off in full to avoid interest charges, said Sean Tipton from the Association of British Travel Agents (ABTA).

One trap you must not fall into

An increasingly common trap when paying with card (credit or debit) is being presented with the option to pay in the local currency or in pounds, said Mr Jones and Mr Tipton.

While paying in sterling might "seem like a wonderful convenience" you will ultimately be paying "quite a bit more for the purchase", Mr Jones said.

If you pay in pounds, the local retailer's bank sets the exchange rate, but if you pay in the local currency, your UK bank sets the rate.

DEBIT CARDS

"Some service providers don't apply fees for overseas use on their regular UK debit cards," says Moneyfacts - but you must always check as some incur big fees.

Alternatively, "some service providers offer specialist travel debit cards that don't impose non-sterling transaction fees and cash withdrawal fees".

PREPAID TRAVEL CARDS

If you're looking to avoid a credit check, prepaid cards can be loaded with multiple currencies and work like a debit card, without being connected to your bank.

"Typically, prepaid travel cards will offer competitive or even no charges for foreign usage, which can make them a cheaper alternative to using a normal credit or debit card while on holiday," says MoneyFacts.

One of the most popular prepaid cards, Revolut, uses its own exchange rates, which might not always be the best you can find - and while it is fee free on weekdays, there are charges at weekends, so do your research.

Also be aware - prepaid cards do not offer purchase protection like a credit card and aren't regulated by the Financial Conduct Authority.

CASH

"Don't rely solely on a card - it can backfire on you if you do," said Mr Tipton.

Some taxis only take cash, leaving you to face hefty charges withdrawing from an ATM.

In some countries, like Argentina, it can be difficult to get money out of ATMs without a local bank account, Mr Tipton said.

Mr Jones added: "If you're in a very remote part of the world that actually doesn't have many ATMs and maybe where cash is king, then that might dictate what you need to do."

Where and when to get cash

"I'd strongly recommend [to] get some cash out in the UK," said Mr Tipton.

It can be difficult to find a bureau de change in some developing nations, and ATMs have "started introducing quite hefty charges" across the board, he said.

The exceptions are countries with really high inflation rates, where it may make more sense to get cash out when you arrive, he added.

When to exchange currency really depends on the destination, said Laura Plunkett, head of travel money at the Post Office.

"Exchange rates change frequently, so if you have time, do your homework and lock in a rate when it is good."

What is a good exchange rate for Europe?

Some 80% of British holidays abroad take place in the Eurozone, said Mr Tipton.

The rate has remained "fairly stable", but if you see the pound increasing in value that may be the time to buy a larger amount of Euros for a couple of years in advance, he added.

Mr Tipton said 1.2 to the pound is a "pretty healthy" time to buy, but "it is a bit of a lottery".

Every year the pound gets stronger against the South African rand, and the same in Argentina, where the peso is "unbelievably weak", Mr Tipton suggested.

In store or online?

"Most online suppliers will insist on a minimum order value that might be too high for some people, and you'll have to make sure that you're home for when it's delivered," said Ms Plunkett.

"But typically, rates are better online if that's an option for you."

Terry's is hoping to move "beyond" just being known for its famous chocolate orange and is launching a milk chocolate ball.

It will come in the same 20-segment format as its orange counterpart - to enable some "familiarity" to shoppers, Terry's has said. 

It will roll into "all major retailers" in September, with full distribution in October. The expected price will be £2, putting it on par with previous versions (although you can usually find them on sale somewhere - they're currently £1 at Asda and £1.50 at Tesco). 

It comes after Terry's launched its chocolate mint ball last year, which sold out halfway through the Christmas season (it will also return again this year). 

"Terry's is an institution so anything we do needs to respect the love that our customers have for it," said Terry's senior marketing manager Lorène Decam.

"We are always very careful to balance innovation with the brand's core." 

It's not the first time the brand has tried to innovate - some slightly less successful predecessors to the famous orange were Terry's chocolate apple (1926) and the Terry's chocolate lemon (1970).  

If you're looking to consolidate your credit card debt, you may find that some of the top deals have worsened - with several big banks reducing the amount of interest-free time they allow.

An 0% interest card is actually what it says on the tin - you can put spending/debt on it and you won't pay any interest for a set amount of time. It can be a good option if you are looking to spread out spending on a high-value item, such as a sofa or washing machine. 

But once the interest-free period ends, you can quickly rack up interest, with the average rate of APR standing at 35.6%.

While consumers could find offers of up to 30 months (two-and-a-half years) interest-free, these are becoming harder to come by, according to Moneyfactscompare.co.uk. 

Tesco Bank, one of the market leaders, has reduced its 0% balance transfer offer from 29 months down to 27 months. 

And a month ago, Virgin Money cut its 28-month 0% balance transfer offer to 26 months.

In August 2023, the top offer was 30 months interest-free - today it is 28 months.

If you are shopping around for a new interest-free card, it's worth being aware of exactly when your rate ends, as the interest can quickly stack up. 

Set a calendar reminder a month ahead of time, and try and stick to repayments to ensure the debt is cleared in time. 

A typical small business (such as a restaurant, pub or independent retailer) is now paying over £5,000 more a year in energy bills than before the energy crisis in 2021.

Data from Cornwall Insight's newly launched Business Energy Cost Forecast predicts annual electricity bills for a "typical small business" to be an average of £13,264 by April 2025 - 70% more than they were before the energy crisis began.

While this is a decrease on 2022-23, when the bill for a typical small business rocketed higher than £20,000, the market has never fully recovered from the impact of the energy crisis and Russia's invasion of Ukraine. 

And, unlike household energy bills, businesses do not benefit from any price cap to protect them.

"For all the criticism of the household energy price cap, it does provide a level of protection that businesses simply do not have," says Dr Craig Lowrey, principal consultant at Cornwall Insight. 

"Given the impact of the cost of living crisis on consumer spending and high street trade, the government will need to seriously consider how to support businesses with their high energy costs if they want to prevent further closures."

By Sarah Taaffe-Maguire, business reporter

Last week we brought you news of the pound hitting its highest level against the US dollar since March 2022. 

After a slight dip, sterling is back at those levels with £1 buying more than $1.32. 

It's good for any Britons travelling to America or buying anything in dollars, as your pound is literally giving you more bang for your buck.

The currency shift comes after the chair of the Federal Reserve declared that "the time has come" for an interest rate cut.

Higher interest rates are generally supportive of a domestic currency - one reason is investors get more for their money.

A lack of guidance on how many cuts are likely across the rest of the year bolstered market predictions that several were on the cards before the end of 2024.

That has pushed the US currency sharply down against a basket of international rivals.

The pound is doing well,  but not quite as well, against the euro, as £1 will get you €1.18, the most since the very start of this month. 

The oil price is up about to $81.04 for a barrel of the benchmark Brent crude, the highest in nearly two weeks. 

The UK's benchmark stock exchange index, the FTSE 100 index of most valuable companies on the London Stock Exchange, is up 0.46%. 

The larger FTSE 250 index of more UK-based companies rose 0.19%.

Sir Keir Starmer has given the clearest indication yet that major tax rises are coming in the October budget.

In a news conference in Downing Street, the prime minister said the economic legacy from the previous government was worse than expected - or "dire", to use his word.

He said even the Office for Budget Responsibility had been unaware - and pointed to bigger-then-forecast borrowing for last month.

Sir Keir said: "I'll have to turn to the country and make big asks of you... to accept short-term pain for long-term good."

He went on: "I know that after all you have been through, that is a really big ask and really difficult to hear. 

"That is not the position we should be in. It's not the position I want to be in, but we have to end the politics of the easy answer that solves nothing."

Sir Keir reiterated his promise that VAT, national insurance and income tax won't rise, and the pensions triple lock will be protected.

Follow live updates of this story in our Politics Hub...

Ikea has soft-launched a new marketplace that will allow customers to sell their unwanted furniture to each other - and it looks set to come to the UK.

The platform, Ikea Preowned, will be tested in Madrid and Oslo until the end of the year with the aim of rolling it out globally, The Financial Times has reported.

Ikea already has its buyback programme which allows customers to bring back used furniture, which it then sells on at a discount. The store's Circular Hub (previously known as the Bargain Corner) also sells off display and damaged goods.

Customers will enter their product on Ikea Preowned and their own pictures with a selling price while Ikea's own artificial intelligence-enabled database brings in its own promotional images and measurements.

The buyer collects the furniture directly from the seller, who has the option of receiving money or a voucher from Ikea with a 15% bonus.

Listings are free but Ikea could eventually charge "a humble fee", said Jesper Brodin, chief executive of Ingka, the main operator of Ikea stores.

Basically, if a retailer hasn't provided the goods or services you paid for, chargeback is a hidden way to get your money back.

It's a mechanism whereby banks can reverse transactions made on a credit, debit or charge cards if there is a breach of contract.

You can make a request for a chargeback if the company is refusing to offer a refund. But bear in mind, this is a voluntary scheme card providers subscribe to - not a legal right.

When does chargeback come in handy?

Chargeback can be requested if the goods you purchased were defective or not as described - or if they simply never arrive, even if the company has gone bust.

This is because your bank is requesting the money back from the company's bank - not the company itself.

Chargeback is also useful if there is an error - such as being charged multiple times or after cancelling a subscription - or if someone fraudulently bought the item with your money.

The retailer will be given the opportunity to dispute your claim, but if you're unsuccessful, you can appeal to the Financial Ombudsman.

What cards are covered?

Debit: Visa debit, Visa Electron, Maestro and Mastercard

Prepaid: Visa and Mastercard

Credit cards: Visa Credit, Mastercard and American Express

How does it work?

Claims can be made via email, online form or written letter, but a good place to start is your bank's website, which may have a link for "disputed transactions" or "chargeback claims".

The claim should include the name of the retailer, the date of your purchase and how you paid, a detailed description of the goods, and expected delivery dates.

Describe what went wrong and, if this includes returning faulty goods, provide proof.

More evidence may be requested, including invoices, receipts, correspondence and the retailer's terms and conditions.

"You need to cite 'breach of contract' relating to your consumer rights," consumer champion Scott Dixon, AKA The Complaints Resolver, told Sky News.

"You need to push hard on chargebacks as they are often rejected on the first attempt.

"Your bank or credit card provider will reverse the payment and give the retailer an opportunity to present their case.

"Retailers don't like dealing with chargebacks as they are problematic and costly to resolve."

Under American Express rules, the retailer has 20 days to dispute the claim, while under Visa and MasterCard rules they have 45 days.

Must-read caveats

Time limit: You must request a chargeback within 120 days of the date you were due to receive the product. Future events, like plane tickets, are covered by this policy from the date they would be used.

Deposits: Because you are refunded what you paid by card, you won't get your money back if you just put down the deposit via plastic and paid the rest by a different method.

Credit cards: If your credit card purchase is worth more than £100, you are entitled to legal protection under Section 75, which will pay out the full cost of an item even if you only deposit a single penny.

Mastercard minimum: There's a £10 minimum spend. This does not apply to Visa or American Express.

PayPal: Chargeback cannot usually be used when paying via PayPal. But it is possible if you have an empty account and pay using your registered debit card because it is easier to prove the amount you paid corresponds with the price of the purchase, according to MoneySavingExpert.

Read other entries in our Basically series...

Bank of England governor Andrew Bailey says his fears over persistent inflation are easing - in comments that will be noted by anyone hoping for lower interest rates in the near future.

In the text of his speech in Jackson Hole, Wyoming, on Friday, Mr Bailey said the "second round inflation effects appear to be smaller than we expected" and that "we are now seeing a revision down in our assessment of that intrinsic persistence, but this is not something we can take for granted".

The governor cautioned it was "too early to declare victory" over inflation, and given that indications from the Bank have been that rates will fall more slowly than they rose, his words have not led to a sudden expectation that the base rate will be cut again in September.

Instead, a November cut is seen as a more likely, but Mr Bailey's comments will give hope to those hoping for rates dipping below 4% next year. 

Inflation returned to target 2% in May, only to rise again to 2.2% in July. A further uptick is anticipated when energy bills go up later this year.

Interest rates are hiked to encourage saving over spending, and when this happens price rises tend to slow.