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| Version 0 | Version 1 |
|---|---|
| Surprise jump in Christmas sales | Surprise jump in Christmas sales |
| (20 minutes later) | |
| Retail sales experienced a strong rise in December, confounding expectations of a poor Christmas, figures show. | |
| Sales experienced their biggest monthly increase since June 2005, rising 1.1% from November, the Office for National Statistics (ONS) said. | Sales experienced their biggest monthly increase since June 2005, rising 1.1% from November, the Office for National Statistics (ONS) said. |
| The monthly increase - which was sharply higher than forecasts of a 0.5% rise - took the annual rate up to 3.7%. | The monthly increase - which was sharply higher than forecasts of a 0.5% rise - took the annual rate up to 3.7%. |
| Price cuts were not necessary to drive sales as prices were up 0.2% compared with the same time last year. | Price cuts were not necessary to drive sales as prices were up 0.2% compared with the same time last year. |
| Analysts said news that prices had climbed for the fourth month in a row - the longest run of consecutive rises since April 1999 - could lead to further rate increases as the Bank of England tries to rein in inflation. | |
| Recent data showed that consumer price inflation surged to 11 year highs of 3% during December. | Recent data showed that consumer price inflation surged to 11 year highs of 3% during December. |
| The Bank has also raised concerns about the continued strength of the housing market as mortgage lending remains at record highs. | |
| "I rather suspect these December figures were a bit of a one-off ... but it's clearly supporting the call for higher rates," said Commerzbank economist Peter Dixon. | |
| Mixed fortunes | |
| Many experts had warned of a poor trading environment in the run-up to Christmas, as shoppers failed to hit the High Streets. | |
| Towards the end of December, analysts Footfall said the number of shoppers visiting the High Street was down 9% on last year. However, sales improved as shoppers splurged on presents, food and drink just days ahead of Christmas, while online sales jumped to record levels. | |
| Retailers have also had a mixed festive season with sales dropping at Woolworths and HMV, while Tesco and John Lewis performed well. |