Its latest distributive trades survey found retail sales had grown more slowly than expected for a second consecutive month. However, sales were still considered above average for the time of year and the three-month average "remained buoyant", the CBI said.

A spokesman from the Distributive Trades Panel said:

"Because shoppers' pockets are going to be that bit less deep, retailers will be working harder to attract and keep custom in an even more competitive market place."