Retailers enjoy unexpected increase in sales

There was a surprise hike in retail sales during February, new figures have revealed.

The Office for National Statistics has reported that high street sales climbed by 1 per cent last month.

Compared to a year ago, sales were up by 5.5 per cent.

The rise defeated predictions that consumer activity, knocked back by uncertainty over the economy, would fall in February by 0.2 per cent.

The unexpected surge in retail sales may encourage the Bank of England, with one eye on inflationary pressures in the economy, to postpone the next cut in interest rates.