HIGH street sales recovered last month after a weak run-up to Christmas, official figures have showed.

The volume of retail sales last month rose by 0.9 per cent - its highest since September last year - against a fall of 1.1 per cent in December, the Office for National Statistics (ONS) said.

All retailers increased their sales - apart from chemists and sellers of books, cosmetics, medical and sports goods, computer and photographic equipment and other specialised non-food items.

But the figures showed that the relatively robust growth since mid-2003 had come to a halt in recent months, the ONS said.

Analysts may interpret the figures as supporting the Bank of England's case for keeping rates static during the next few months.

The likelihood of a rate rise this year increased following figures earlier this week showing higher-than-expected inflation last month, economists said.

However, while the Bank's monetary policy committee yesterday raised its inflation and growth forecasts, it played down the potential for a rate rise.

The ONS said the sectors showing strongest growth were clothing stores at 5.6 per cent and non-store retailing at eight per cent.

The unadjusted value of retail sales last month totalled £17.5bn. Average weekly sales were £4.4bn.