Sales growth slows on High Street

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UK retail sales growth slowed in March, after a strong rise in February and as retailers raised prices, the Office for National Statistics (ONS) data shows.

Sales volumes grew by 0.3% in March, compared with 1.6% in February, and 4.8% in March 2006, the ONS said.

However, analysts warned that weaker demand in the shops was unlikely to stop the Bank of England from lifting interest rates to 5.5% next week.

Despite the dip in sales, analysts said underlying demand was still strong.

Textiles, clothing and footwear have been contributing to the sales growth.

A slowing at the tills had been expected after February's surge - the highest level of retail sales growth in two years.

The Bank of England has raised rates three times since August last year to keep inflation under control.

However, earlier this week it emerged that inflation was 3.1% in March - well above the government's target of 2%.