British retail sales volumes bounced back more than expected last month to rise at their fastest monthly rate in more than two years, official data showed today.
The Office for National Statistics (ONS) said sales volumes rose 1.4 per cent in February, twice analysts' expectations and the strongest monthly rate since January 2005.
The recovery after a weak January put sales up 4.9 per cent on the year, the fastest annual rate since November 2004.
The data may reinforce expectations the Bank of England will raise interest rates again before the summer, although analysts caution against reading too much into sales figures over the volatile Christmas and New Year trading period.
The rebound in sales came as retailers cut prices for a second month.
Prices were on average 0.3 per cent lower than a year ago. The increase was driven by textile, clothing and footwear stores where sales rose 4.7 per cent, their fastest rate in more than four years.
Despite swings in the monthly figures - February's rise came after a revised 1.5 per cent fall in January and a 1.1 per cent gain in December - the ONS said underlying growth in sales volumes remained close to the long-run average.