Bean is also reported to have said there have been indications of a slowdown in consumer spending since Christmas, but now there are signs things are recovering. Retail sales are a key lead indicator for the interest rate-setting Monetary Policy Committee, as any significant recovery in gross domestic product growth is likely to come from household consumption, according to forecasts in the MPC's inflation report last week. After a much better-than-expected Christmas retail sales period, sales dropped 1.3% in January compared with December and there are fears this slide could continue in the coming months. Higher energy costs proved to be a major squeeze on consumer and business spending last year, and the bank has said that, if prices were to increase further, the squeeze could continue this year. The inflation report also noted that, if there were to be a substantial spike in gas prices, its forecast for headline inflation to remain virtually flat for the next three years could be jeopardized, as inflation would be pushed up.