HIGH street spending continued to grow in the first half of August, but at the slowest rate since last November, as sales growth and price increases fell back from their spring peaks to their long-run averages, according to the CBI.

The Quarterly Distributive Trades Survey revealed that 42 per cent of retailers said year-on-year sales volumes were up in August, while 26 per cent said they were down.

The rounded balance of plus 15 per cent was in line with expectations but was the lowest balance since November 2006 (minus nine per cent).

CBI South East regional director Malcolm Hyde said: "The strong high street spending that retailers enjoyed over the spring has passed, and they have experienced a steadier rate of sales over the past quarter.

"This more moderate growth is expected to continue, and retailers are less inclined to put up prices, which should help alleviate pressure to move interest rates up again.

"The Harry Potter effect seems to have helped lift sales for booksellers, but the damp and disappointing summer has not done clothes shops any favours."