The first slowdown in retail sales in more than a year could reduce the likelihood of further interest rate rises, analysts predicted.

Retail sales have slowed for the first time in more than a year after poor weather hit sales of clothing in July, official figures showed.

The Office for National Statistics (ONS) said sales volumes fell 0.4 per cent between June and July - slightly worse than City expectations, although experts said there was still evidence of buoyancy on the high street.