Retail sales pushed higher in May, beating expectations, as sales of flat-screen TVs spiralled in the run-up to the World Cup.
The figures confirmed the spring upturn on the high street, the Office for National Statistics said.
Retail sales rose 0.5 per cent last month following an upwardly revised 0.7 per cent increase in April. The figures took the annual rate to 4 per cent, sharply higher than the 3.6 per cent expected in the City.
However, this did not alter expectations that the Bank of England will maintain its wait-and-see stance on interest rates and hold at 4.5 per cent for the time being.
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In particular, retailers looked to benefit from a surge in electronics sales, up 20 per cent year-on-year, ahead of the World Cup. “While the flavour of the season appears to be flat-screen TVs, retail sales have been anything but flat over the past few months,” Philip Shaw, chief economist at Investec, said.
But economists were divided on the longer-term impact of the tournament.
“Some retailers apparently reported stronger sales in May … but we do not know precisely how much of the rise in overall sales [the World Cup] might have accounted for,” George Buckley, chief UK economist at Deutsche Bank, said.
“The string of positive retail sales figures may well not last into June, with the World Cup having tended in the past to reduce spending during the event itself.”
Clothing and footwear sales also posted strong sales amid signs the pressure on retailers to discount prices is easing. The retail sales deflator, a measure of how quickly prices are falling, rose to -0.9 per cent in May from -1.2 per cent in April.