UK retail sales growth slowed to a four-month low in August, despite a 2.6 per cent jump in food sales, as shoppers pulled back on discretionary spending,

Food sales remained the strongest part of the retail market, rising 2.6 per cent compared with August last year. However,  growth slowed from 3.8 per cent in July and came in below the 12-month average of 3.2 per cent.

The latest BRC-KPMG Retail Sales Monitor data highlighted total retail sales did rise 0.7 per cent year on year during the four weeks to 29 August. But August growth was down from 1.3 per cent growth in July and below the 12-month average of 1.6 per cent.

Like-for-like sales, which strip out the impact of changes in retail floorspace, increased 0.5 per cent, compared with one per cent the previous month.

The slowdown came as spending linked to the unusually warm weather earlier in the summer lost momentum, with the BRC pointing to growing pressure on household budgets.

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Non-food sales fell 0.8 per cent year on year, following a 0.7 per cent decline in July. In-store non-food sales dropped 1.2 per cent, while online non-food sales edged down 0.2 per cent.

Big-ticket categories including furniture and household appliances were among those to suffer as consumers prioritised smaller treats such as health and beauty products.

BRC lead economist Harvir Dhillon said rising household bills were prompting shoppers to “tighten their belts”, particularly when it came to discretionary purchases.

He added that retailers were facing the combined pressure of rising operating costs and weaker consumer demand, calling on the government to use the upcoming Autumn Budget to take action on business rates and energy costs.

KPMG UK head of consumer, retail and leisure Linda Ellett said summer spending had begun earlier than usual this year as higher temperatures brought forward seasonal purchases.

While food, drink, health and beauty continued to benefit from warm weather and holiday spending in August, she said “most other categories couldn’t sustain another month of growth”.

Retailers are now shifting their attention to back-to-school trading and preparations for the crucial final quarter, including the run-up to Black Friday and Christmas.

The weaker sales figures come alongside subdued shopper traffic. Separate BRC-Sensormatic data showed total UK retail footfall fell 1.7 per cent year on year in August, with high street visits down 3.1 per cent.