UK retail sales surge in June heatwave

British retail sales jumped at three times the rate analysts expected in June as hot weather and early summer discounting boosted sales of clothing, official data showed on Thursday.

The Office for National Statistics said sales volumes rose 1.2 percent last month, above all forecasts in a Reuters poll, after a revised fall of 0.9 percent in May.

On the year, sales were up 2.9 percent, the strongest rate so far in 2009.

While the figures support the view that the British economy is over the worst of the recession, they are unlikely to settle the debate over whether the Bank of England will put more stimulus into the economy.

The central bank has already cut interest rates to a record low 0.5 percent and embarked on an unprecedented policy to pump 125 billion pounds into the economy by buying assets, mostly government bonds.

Retail sales figures have proved notoriously volatile in recent months and analysts have questioned the veracity of the series which has typically been much stronger than anecdotal evidence would suggest.

The ONS said clothing sales were one of the main drivers of the June increase. Textile, clothing and footwear sales rose by 4.7 percent on the month, the biggest gain since January.

Retailers bringing forward summer sales may have also played a part, with prices in that sector on average 6.7 percent lower than a year ago.

Overall, prices in the retail sector were on average 0.2 percent lower on the year, the first drop since January.