Brexit vote begins to bite as rising food and fuel bills hit retail sales

Figures put UK growth forecast in doubt, with rising inflation squeezing household spending

British shoppers reined in their spending last month as a surge in fuel prices and higher food bills ate into household finances in a further sign the pound's sharp devaluation is starting to bite.

Official figures showed sales volumes fell 0.3% in January, confounding economists' expectations of a rise. Adding to evidence of ailing consumer sentiment, December's weak performance was revised even lower in the latest sales update to show a 2.1% decline over the Christmas period.