Official figures show that British retail sales grew by slightly more than expected in May, in a further sign that higher interest rates have yet to knock down consumer demand.
The Office for National Statistics said sales rose 0.4% on the month, recovering from April's 0.1% fall. The annual rate of growth eased to 3.9% from 4.2% in April but was still above expectations for a 3.8% gain.
The ONS said underlying growth remained firm, with sales in the three months to May up 4.4% on the year.
Analysts said the figures suggested four hikes in borrowing costs since August had not yet dented consumer spending and reinforced the view the Bank of England would raise interest rates to 5.75% soon.
There were signs that price pressures are easing in the shopping centres, with the retail sales deflator slowing to 0.5% from April's eight-year high of 1%.
Policymakers have been concerned about companies' growing pricing power as they try to repair profit margins squeezed by last year's energy price spike.
All sectors showed an increase in sales last month except textiles, clothing and footwear, which was 2.5% down on the month. Household goods sales were particularly strong in May, up 2.9%, helped by an increase in DIY sales.
