A surprise rise in retail sales over May was reversed by the biggest fall on record last month suggesting a consumer spending slowdown is gathering pace.

Retail sales volumes plunged 3.9% over June, official data showed, the biggest slump since records began in January 1986.

It came after a sunny weather-inspired 3.6% sales leap the previous month, which flew in the face of wider evidence that higher fuel bills and a weaker housing market were squeezing household budgets.

Economists said June's data from the Office for National Statistics (ONS) confirmed shoppers were increasingly reining in their spending, and would reduce pressure for the Bank of England to hike interest rates to bring down soaring inflation.

Allan Monks from JP Morgan said: "Most will see the data as confirmation that the consumer is downshifting, and we would agree that June's release likely marks the beginning of the phase of sustained weakness in the retail sales numbers."

Minutes from the Monetary Policy Committee's meeting this month showed member Tim Besley voted for a rate hike to bring inflation back down to the Government's 2% target. The cost of living measure is currently at an 11-year high of 3.8%.

Vicky Redwood of Capital Economics said: "The sales figures will provide at least some reassurance that weaker consumer demand will prevent retailers from passing on their sharp rises in costs - reducing the chances that Tim Besley will muster a majority for a rate hike next month."

Clothing and footwear shops were the worst hit in June, with sales down 6.9%. Food sales also fell 3.6%, the biggest drop since records began.

Economists had been expecting a fall in sales volumes of about 3% last month following May's shock rise, which was revised upwards from 3.5%.

Consumers have been battling with soaring fuel and energy costs this year, as well as rampant food inflation.

Non-food stores as a whole suffered a 4.5% sales drop between May and June, the ONS said, which was the biggest fall on record.

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