Retail sales volumes rose by 0.5 per cent in August after falling by the same amount in July, helping the high street recover some ground over the summer. The increase, which exceeded analysts’ expectations, was supported by supermarkets, online retailers and air-conditioned department stores, with hot weather, promotions and the World Cup encouraging spending.

Sales volumes were 0.9 per cent higher across the three months to August, while online sales rose 1.7 per cent in the month and department-store sales reached a three-month high. Retailers warned that momentum may weaken in autumn as higher energy, food, fuel and transport costs pressure household budgets, leading consumers to prioritise essentials over discretionary purchases.