British retail sales rose faster than expected last month, bolstered by a pick-up at household goods stores. The new figures will reinforce expectations that UK interest rates are headed higher.
The Office for National Statistics said sales rose by 0.6% in April, after an upwardly revised 0.9% in March. Annual growth, at 3%, was the strongest since December.
Interest rate futures pared gains and the pound strengthened as the data added to evidence that consumer spending is recovering and would not stand in the way of a Bank of England rate rise from 4.5%.
In recent weeks, some of Britain's leading retailers have posted buoyant sales growth, echoing upbeat surveys from the Confederation of British Industry and British Retail Consortium.
And there are already signs of a boost to sales from the upcoming World Cup soccer tournament, as Britons splash out on new televisions to watch matches at home. Department store chain John Lewis has reported a 200% surge in television sales compared with a year ago, while Dixons said its TV sales had climbed 100% in recent months.
The ONS said sales at household goods stores were particularly robust, with monthly and annual growth the highest since December, reflecting strong sales of home improvement and electricals goods.
However, discounting by retailers may have helped to boost sales, with the implied deflator showing prices were 1.2% lower in April than a year ago, compared with a deflator of 1.1% in March.
