Retail sales have, for the first time, grown for 12 successive months, with the sunny weather credited for surge in high street takings in May.
National Statistics said that sales rose last month by 0.8 per cent, faster than the 0.6 per cent the City had expected.
The rise took growth in annual retail takings to 7.4 per cent, the fastest since April 2002, and marked a full year of month-on-month increases in sales.
Analysts said the data added further support to the Bank of England’s decision two weeks ago to raise interest rates for the second successive month.
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Howard Archer, the Global Insight economist, said: “The surge in retail sales in May, despite an interest rate hike early in the month, highlights how unperturbed consumers were by the Bank’s gradualist approach to raising interest rates.”
Other said the data could accelerate further rate increases from the 4.5 per cent level reached this month.
John Butler, the HSBC economist, said: “The sooner interest rates rise to 5 per cent the greater chance the UK has of escaping a boom, bust cycle.”
At Deutsche Bank, George Buckley, the company’s UK economist, said: “Today’s report suggests that another rate hike in July is becoming a distinct possibility.
“Should the data continue to come in as strong as we have seen over the past two weeks, we would have to question why the Bank would want to wait for another month before tightening.”
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National Statistics said that May’s sales surge reflected warm weather, which fuelled demand for summer clothes garden furniture and plants.
“Sports shops also reported increased sales of sports wear due to higher activity in outdoor pursuits,” National Statistics said.
Mail order and internet retailers also enjoyed a strong month.