There was a surprise drop in retail sales last month.
According to figures from the Office for National Statistics, sales dipped by 0.1 per cent in October compared to a 0.3 per cent rise registered in the previous month.
The slip dragged the annual rate of growth in sales down to 4.4 per cent.
Inflationary rises in food prices, the effect of mild, wet weather on clothing sales and the impact of higher interest rates were all blamed.
The real fear is that the recent buoyancy in sales has at last been hit by the higher cost of borrowing and sluggish wage increases.
Despite the unexpected dip in October, the longer-term trend, however, was still up.
In the three months to October, sales rose at a rate of 5.1 per cent set against the same period a year ago and were up 1.4 per cent on the preceding quarter.
One reason for the sustained levels of High Street spending has been the competitive discounting in which a number of retailers have been engaged.
Date:19 November 2007
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