Mixed weather and the Euro 2004 football championships combined to produce slower growth in high street sales last month.
But faster growth in the prices of computer games and foreign holidays helped drive inflation to an 18-month high, increasing pressure on the Bank of England to raise interest rates next month.
high street sales grew by five per cent on the previous year in June against a 6.5 per cent rise in May, according to a study by the British Retail Consortium (BRC) and accountants KPMG.
On a like-for-like basis, sales expanded by 2.4 per cent against 3.7 per cent in May.
The BRC and KPMG said sunny weather giving way to cooler, wet weather later in the month helped sales of womenswear, fridges and picnic products, tumble driers and DVDs.
Euro 2004 boosted sales of drink and televisions but cut the number of shoppers on England match days.
Data from the Office for National Statistics yesterday showed the Consumer Prices Index (CPI) rose to 1.6 per cent in June from 1.5 per cent the previous month.
Increased costs of computer games and higher travel costs lifted the CPI, with holidaymakers making advance bookings for overseas trips. Economists anticipated the rise in inflation, believing the reason would be petrol prices - but they actually fell in June.
Wednesday July 14, 2004
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