Increase in Easter sales figures fails to lift gloom for retailers

The latest survey by business body the CBI showed 21 per cent of retailers reporting an increase in sales volumes in the year to April, up from 15 per cent the previous month, and more than the 18 per cent who expected a rise.

The survey, which covered the first two weeks of the month, suggests that retailers continued to enjoy a moderate pick-up in trade after official data showed a surprise boost for sales the previous month. But, worryingly for the economy, they feel the growth may be short-lived, with retailers predicting sales growth would decline marginally in May and remain worse than normal for the time of year.

CBI chief economic adviser Ian McCafferty said: “With few signs of demand picking up rapidly in the coming months, conditions on the high street look like remaining tough for retailers.”

Average sales growth for the quarter, which the CBI said indicated the underlying trend, hit its lowest level since July.

Grocers and clothes retailers enjoyed the biggest uplift, while sales of electrical items and DIY goods decreased, suggesting many consumers are increasingly shying away from all but essential purchases.

Separate figures showed food prices creeping back upwards again last month, heaping further pressure on the Bank of England to raise interest rates.

The price of food in shops increased 1.2 per cent between March and April, driven by the cost of fresh fruit, dairy products, eggs and cooking oils, according to British Retail Consortium.