The data offer little to change the picture for sterling or gilts on their own, but the mix carries a stagflationary edge: households are spending more on fuel while volumes in discretionary categories stay subdued. A near-17% jump in fuel spending shows how the oil and diesel shock is feeding into household budgets, which keeps upside risk on UK inflation even as underlying demand looks soft. For UK retailers, weak non-food sales and consumers trimming non-essential spending point to a cautious run into the key Christmas trading period. The 28 October budget is the next catalyst, with any tax rises likely to weigh further on discretionary spending.---British shoppers spent a little more in September, but much of it went into the fuel tank and the pub, not the high street.Summary:BRC like-for-like sales rose 1.0% year on year in September, above the 0.7% expected and up from 0.5% in August; total sales rose 1.3%, below the 12-month average of 1.5%Food sales rose 2.5% while non-food edged up just 0.3%; health and beauty had its best month of the year, but warm weather hurt clothing and footwearBarclays card spending growth slowed slightly to 2.0% from 2.1%, with essential spending up 2.5% on a near-17% jump in fuel spending as diesel prices hit record highsSpending at bars, pubs and clubs rose nearly 4%, a fourth straight monthly gain, helped by summer weather that lasted through most of SeptemberBarclays’ gauge of confidence in household finances hit a seven-month high of 67%, but 68% of consumers are concerned about the 28 October budget and 30% are cutting back on non-essentialsUK retail sales growth picked up more than expected in September, but the detail of two consumer surveys published on Tuesday suggests households are not so much spending more as paying more, with record diesel prices absorbing a growing share of budgets.The British Retail Consortium said like-for-like sales, which strip out changes in store space, rose 1.0% from a year earlier, beating forecasts of 0.7% and doubling August’s 0.5% pace. Total sales rose 1.3%, up from 0.7% in August but still below the 12-month average of 1.5%. The BRC measures sales by value rather than volume, so the gains include the effect of higher prices.The split between categories tells the story. Food sales rose 2.5%, while non-food sales barely moved, up 0.3%. Health and beauty had its strongest month of the year, and toys got a lift from products marking Pokemon’s 30th anniversary. Clothing and footwear had a weak month as unseasonably warm weather delayed the switch to autumn wardrobes. BRC chief executive Helen Dickinson said households remained cautious ahead of expected increases in bills and taxes.A separate survey from Barclays, based on card spending data, showed annual growth slowing slightly to 2.0% from 2.1%. Essential spending rose 2.5%, driven by a jump of around 17% in fuel spending after diesel prices hit record highs, a reminder of how the global energy shock is filtering through to household budgets. Non-essential spending rose 1.8%. The warm weather was good news for hospitality, with spending at bars, pubs and clubs up nearly 4% for a fourth consecutive monthly gain.Consumer sentiment sends mixed signals. Barclays said confidence in household finances rose to a seven-month high of 67%. Yet 68% of consumers said they were worried about how finance minister John Healey’s budget on 28 October would affect them, and 30% said they were cutting back on non-essential spending.The two surveys also cover different periods, which helps explain why they appear to move in opposite directions. The BRC data run from 30 August to 3 October, capturing the start of autumn, while the Barclays figures cover 22 August to 24 September.With fuel costs eating into disposable income and the budget only weeks away, the next few months will test whether improving confidence translates into spending beyond essentials, particularly as retailers head into the crucial Christmas period. This article was written by Eamonn Sheridan at investinglive.com.