
Retail sales fell unexpectedly in the run-up to Christmas, slipping 0.3% in December, according to latest official figures.
It follows a 0.1% increase in November, revised down from a previous estimate of a 0.2% rise.
Analysts had been expecting sales to rise by 0.4% in December, with shoppers stocking up ahead of Christmas.
The Office for National Statistics (ONS) said food sale volumes, mainly from supermarkets, were down 1.9% last month, while non-food stores were up 1.1%.
Meanwhile one of the strongest performers were clothing retailers, with sales volumes 4.4% higher, rebounding from recent months.
The decline in the all-important run up to Christmas comes after the October Budget raised taxes by £40bn, including a £25bn hike in national insurance contributions for employers.
ONS senior statistician Hannah Finselbach said: “Retail sales fell in December following last month’s slight increase. This was driven by a very poor month for food sales, which sank to their lowest level since 2013, with supermarkets particularly affected.
“It was a better month for clothing shops and household goods stores, where retailers reported strong Christmas trading.
“With the timing of Black Friday falling within these latest data, our figures when not adjusted for seasonal spending show overall retail sales grew more strongly than in recent Decembers.”
Deloitte head of retail Oliver Vernon-Harcourt added: “This worse-than-expected performance for the sector, particularly in food, reflects how nervous consumers are still making cut backs despite the easing of inflationary pressures.
“A boost to clothing could be explained by a cold snap of weather and gift giving, but this was offset by a surprisingly poor performance for food – despite many grocers reporting strong festive results.
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