British retail sales fell in October for the first time in nine months.
The Office for National Statistics (ONS) said sales fell 0.1 per cent last month, putting them up 4.4 per cent on the year. Sales growth in September was halved to 0.3 per cent.
Sterling tumbled after today's weaker-than-expected report, which showed sales growth in September was only half as strong as initially reported.
The biggest fall came from clothing and footwear stores where milder weather depressed sales. Food stores also registered a decline following steep price increases in this sector. Overall, however, prices were on average 1.1 per cent lower than a year ago.
The figures suggest consumer spending is slowing from its recent heady pace and reinforcing expectations for lower interest rates ahead.
The central bank yesterday cut its growth forecasts and signalled two interest rate cuts could be on the cards for next year.