Retail sales suffer biggest slump

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The Office for National Statistics said the retail sales volumes fell 3.9% between May and June, the largest decrease since records began in January 1986. It followed a 3.5% sunny-weather inspired sales leap seen the previous month.

Clothing and footwear shops were the worst hit in June, with sales down 6.9%. Food sales also fell 3.6%, the biggest drop since record began.

Economists had been expecting a fall in sales volumes of around 3% last month, following May's shock 3.5% rise.

Consumers have been battling with soaring fuel and energy costs this year, as well as rampant food inflation. Non-food stores as a whole suffered a 4.5% sales drop between May and June, the ONS said, which was the biggest fall on record.

Sales volumes at household goods stores, which includes furniture and electrical goods sellers, fell 5%, the biggest slump since April 1991 when Britain was in the grip of the last recession.

Retail giant Marks and Spencer has notably been experiencing a sales slowdown in recent months, warning earlier this month that like-for-like sales fell 5.3% during the quarter to June 28.

Total retail sales volumes rose 2.2% in June compared to the year before, the ONS data showed, the lowest rise since February 2006.

Average weekly value of sales in June came in at £5.1 billion, 3.4% higher than the previous year.

The ONS data highlighted the impact of food inflation, with June's price deflator, which measures the annual change in price in the retail sector, rising to plus 0.5%.