The Office for National Statistics said retail sales volumes fell by a much larger than expected 3.9 per cent in June, after a slightly upwardly revised 3.6 percent jump in May and taking the annual growth rate down to 2.2 percent

Analysts had forecast a monthly fall of 2.5 percent for an annual rise of 4.4 percent.

Sales in the three months to June were up 0.6 per cent on the previous three months, the lowest rate since December 2007.

The figures show that consumer spending is slowing but still holding up relatively well in the face of sharp house price falls and rising unemployment.

Both food and non-food sectors suffered their sharpest monthly falls on record after large jumps in May thanks to a heatwave boosting sales of clothes and summer food and drinks.

Household goods sales posted their biggest monthly fall since 1991 and textile, clothing and footwear sales fell at their sharpest monthly rate since 2002.

The only sector to post a rise on the month was non-specialised stores. The ONS said department stores may have had some early summer sales but otherwise prices on average in the overall retail sector were up 0.5 percent on the year.

That was the biggest rise since May 2007.