High Street sales keep rising

Shopping 'till you drop in January

Shoppers showed no sign of slowing down in the New Year as High Street spending continued to boom in January, industry figures show.

Sales grew by 8.3% in the first month of the year, the British Retail Consortium (BRC) said on Tuesday.

Kicking the habit boosted nicotine patch sales

That follows an 8.1% rise in December, which represented the best Christmas sales for at least six years.

January sales helped increase demand for large household goods, with carpets, furniture and electrical items selling well, and "phenomenal sales" of oriental rugs.

New Year's resolutions helped boost sales of slimming products and nicotine patches, while travel items showed the first signs of picking up following the slump in sales post-11 September.

Food and drink sales were also up, as were sales of clothing.

Rising prices on the way?

City analysts believe the boom in sales and signs the global economy is picking up mean interest rates may have to rise before the summer.

However, the BRC said the increase in sales in the UK had not come at the expense of inflation.

Figures from the BRC last week showed the prices of commonly-bought goods fell by 0.44% month-on-month in January.

BRC director general Bill Moyes warned against putting up interest rates.

He said: "Retail growth is central to job creation and central to the economy.

"If it is damaged by any increase in interest rates, the effect will be felt throughout every sector."

The BRC figures, which cover the period 30 December to 2 February, showed the three-month trend rate of sales growth, which accounts for monthly variations, held at 5.9%.

The High Street boom is in stark contract to the fortunes of the UK's manufacturing sector, which recorded its largest annual fall for more than a decade earlier this month.