The value of UK retail sales rose 4.3% in July compared with the same month last year, but sales volumes remained unchanged as consumers and retailers continued to face challenging conditions.
Sales values in July edged up 0.8% against the previous month, with volumes up 0.2%, mainly driven by predominantly food stores which increased by 0.7%.

Year-on-year, predominantly non-food stores saw sales volumes decline 1.1%, the first decrease in this sector since January 2010, when it fell by 3.7%. The main downward pressure came from household goods, which declined 4.1%.

Earlier this month, the BRC-KPMG Retail Sales Monitor showed UK retail sales values rose 0.6% on a like-for-like basis in July 2011 compared with July 2010, when sales went up 0.5%.

Commenting on the ONS figures, British Retail Consortium director general Stephen Robertson said: "This confirms the painful picture painted by our own figures last week. Conditions are increasingly difficult for customers and retailers. All the growth in sales values came from inflation and January's increase in VAT; people are actually buying fewer goods than a year ago.

"Customers' ability to spend is being squeezed by rising costs, particularly utilities and low wage rises. Food sales continue to outperform non-food with inflation helping to drive top-line growth. But it's taking a record number of promotions to tempt customers into stores."