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World Cup spending lifts UK sales

Household goods - World Cup sparks increased spending
Household goods - World Cup sparks increased spending

Official figures show that British retail sales received a World Cup boost in June, as strong sales of electrical goods drove a faster than expected 0.7% monthly rise.

The Office for National Statistics said sales volumes rose at an annual rate of 1.3%, also faster than the 1% expected by analysts, after an upward revision to May's monthly reading to 0.8% from 0.6%.

The data suggested that consumer spending would boost second quarter GDP growth in the UK. A first estimate of GDP will be released on Friday.

Household goods stores led the rise in June, with sales jumping by 1.6% on the month and 6.1% on the year - their biggest annual increase since May 2008 - as soccer fans splashed out on the latest technology for the World Cup tournament in South Africa.

Discounting by retailers also lured in shoppers, with many outlets bringing forward seasonal sales. The retail sales deflator, a measure of price inflation, eased to 1.3% on the year, barely half May's level and the lowest since November.

Excluding car fuel, retail sales were up even more strongly, rising by 1% on the month and 3.1% on the year.