British retail sales rose at their fastest annual rate in over two years in July as a heat wave boosted sales of barbecue food and outdoor items, adding to signs that third-quarter growth has got off to a strong start.
Retail sales volumes jumped 1.1% on the month - almost twice as fast as expected - to give an annual rise of 3%, the highest since January 2011, official data showed today.
The Office for National Statistics said today that feedback from supermarkets suggested the sunny weather had boosted sales of food, alcohol and clothing.
Supermarket sales grew at their fastest annual rate since April 2011.
This echoes the message last week from the British Retail Consortium, which represents large chains. The BRC said its members enjoyed their best July since 2006 with sales up 3.9% on the year in value terms, with the weather effect bolstered by a feel-good factor from British sporting success and a royal baby.
ONS figures showed that retail sales values - which unlike the volume measure are not adjusted for inflation, rose an annual 4.9% - the highest since March last year.
Last week new Bank of England Governor Mark Carney said the central bank would not raise interest rates until unemployment sank to 7%, something he forecast would take three years.
But many in the markets are betting a rate rise could come sooner.
This view that was reinforced yesterday by robust jobs data and concern from one Bank of England policymaker that Carney's guidance policy had inadequate safeguards against high inflation.
Britain's economy grew an unusually rapid 0.6% in the three months to June, and some economists say third-quarter growth could be faster, with support to consumer morale from government schemes to aid house purchase.
