Retail sales slip in February

UK retail sales slipped 0.8% in February compared to the previous month, according to the Office for National Statistics (ONS).

The higher than expected fall in the total volume of retail sales casts a further cloud over the economic landscape after the retail price index of inflation shot to a 20-year high in February and public sector borrowing hit record levels.

Both food and non-food stores saw falls in sales of 0.4% and 1.6% respectively, says the ONS, as hard-up shoppers stayed away from the high streets.

Against the disappointing monthly figures, the volume of retail sales in February increased 1.3% compared with the same month last year. Sales in the three months to December 2010 also increased 0.1%.

Despite the gloomy picture on the high street, Chancellor George Osborne yesterday unveiled a number of sweeteners for stretched households, including a freeze on council tax and the scrapping of the fuel price escalator.