Retail sales in the year to February rose by a stronger-than-expected 5.5 per cent, dampening hopes that the Bank of England will cut the interest rate next month.

Over the same 12 months, the value of sales rose 6.6 per cent as rising food costs finally reached the high street. Compared with February last year, weekly spending last month hit an average £4.9 billion.

The Office for National Statistics (ONS) said that the volume of retail sales between January and February rose by 1 per cent. Economists had predicted it would drop 0.2 per cent.

In the three months between December and February, retail spending increased by 2.6 per cent.

The surprise rise in sales was dominanted by increased spending on food, with sales up 4.4 per cent in the three months to February. Non-food spending rose 0.4 per cent.

Although the ONS said non-food spending was strong across most sectors, it said sales of household goods was still weak, as consumers decided against buying expensive furniture or kitchen appliances.

Today's figures make the likelihood that the Bank of England will cut borrowing costs more remote. Earlier this week official figures revealed that inflation had risen to 2.5 per cent in February.

This means that the Bank of England's 2 per cent target has been exceeded for five months in a row.

Economists forecast that this may delay the expected cut in April to May.

Howard Archer, chief UK and European economist at Global Insight, said: "We still believe that spending will suffer over the coming months as consumers are pressurised by muted real disposable income growth, tighter lending conditions, a substantially softer housing market, lower equity prices and increased debt levels.

"Household purchasing power will be dented by higher utility bills and elevated food prices, while many homeowners are having to re-fix their mortgages at significantly higher rates.

"Furthermore, elevated concerns about the economic outlook should encourage consumers to tighten their belts."

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