Article: Surprise fall in retail sales eases fears of possible interest rate rise

RETAIL SALES suffered an unexpected fall last month according to official statistics that jarred with some retailers' reports of a bumper Christmas and put a brake on forecasts of an imminent hike in interest rates.

The amount of goods passing through shops' tills last month was 0.3 per cent lower than in November, compared with the previous month's 1.0 per cent leap.

This was the first fall in a year and half and left the annual growth at 5.7 per cent, or the lowest since Christmas 2000.

The British Chambers of Commerce said signs of a weak high street should "knock any talk of interest rates rising on the head". Ian Fletcher, its chief economist, said: "Further rate cuts may be needed ...

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