Retail sales growth remained sluggish in October and below the monthly average for the past two years, according to the British Retail Consortium.

UK like-for-like retail sales rose just 1 per cent in October, compared with the same month last year, when sales were up 2.6 per cent. October’s growth is the weakest since the 0.5 per cent reported in November 2006.

BRC director-general Kevin Hawkins said: “This result reflects the downward trend in sales growth that we have been anticipating as a consequence of higher mortgage interest rates and other pressures on household incomes. It points to some challenging trading conditions for many retailers in the run-up to Christmas, which are likely to persist until interest rates are reduced and consumer confidence begins to improve.”

In the three months to October, like-for-like sales rose 2 per cent, from 2.1 per cent in the three months to September. Total sales climbed 3.9 per cent compared with 4 per cent last time.