Higher prices weigh on Christmas sales growth

RETAILERS suffered the weakest Christmas shopping growth for five years as higher prices hit spending.

December’s retail sales rose 1.4pc by volume compared with the same month of 2016, the slowest growth since 2012.

To get that modest rise in goods, shoppers had to spend an extra 4.4pc, the Office for National Statistics said, underlining the substantial impact of rising prices. Inflation has started to slow, but price increases of 3pc in the 12 months to December remain well above pay growth, which came in at just 2.5pc in the year to October. Black Friday dragged some sales forward a month, flattering November’s figures but worsening December’s.

Ian Gilmore, of Barclays, said: “The fact that we’re still in positive territory should give some comfort to retailers in difficult conditions”.

Food sales fell, with volumes down 1.1pc on the month and 0.6pc on the year.