House price revival helps lift retail sales

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House price revival helps lift retail sales

The recovery among shoppers received a boost after retail sales surged last month, helped by half-term holidays and Halloween, while house prices rose at their fastest rate since 2006. Food sales grew 4.6 per cent compared with a year earlier, the slowest pace since March 2008, as food price inflation has slowed sharply. Overall retail sales rose 5.9 per cent in October compared with a year earlier, the biggest one-month rise since March 2007, excluding figures from April, which were lifted by the timing of the Easter holidays. Smaller rises in food prices have put pressure on profit margins at supermarkets. That in turn has encouraged large stores to drive up sales of non-food goods such as clothing through price cuts.

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