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UK sales data won't change rates

Official figures show that British retail sales growth eased in March after a strong rise in February, while prices picked up at their strongest rate in six months.

The Office for National Statistics said sales rose 0.3% on the month, less than the 0.5% forecast by analysts, giving an annual growth rate of 4.8%.

February retail sales volumes were revised up to show 1.6% growth - the strongest monthly gain in more than two years.

The figures are unlikely to alter expectations the Bank of England will raise interest rates to 5.5% next month and probably again after that, especially given rising price pressures.

The easing in growth came as retailers raised prices at the fastest pace since September with the deflator, a key measure of price pressures, up 0.4% on a year ago.

The March rise in sales was driven by most sectors, with textiles, clothing and footwear contributing strongly again. But non-store retailing, which includes online and mail order catalogue shopping, fell almost 4 percent on the month.