Turmoil in the financial markets failed to deter shoppers last month after official figures today showed a surprise jump in retail sales.
The Office for National Statistics (ONS) said sales volumes increased by 0.6% in September, much stronger than the 0.1% forecast by City analysts.
The continued strength on the high street was helped by a third successive month of sharp discounting, reflecting nerves among retailers following the Northern Rock crisis and a hike in mortgage costs.
While the Bank of England will welcome signs of reduced inflationary pressure, analysts said September's figures for overall retail spending made a cut in interest rates from 5.75% less likely next month.
ING economist Rob Carnell said: 'It does not appear that the UK consumer's appetite for spending has been curbed at all yet by frequent reports of an imminent housing crash by the media, or by the financial market turmoil that has hit the British banking system.'
