British retail sales fell at their sharpest monthly pace in 1-1/2 years in January as the cold and icy weather pushed down purchases of household goods at the fastest pace since 1988, official figures showed on Friday. The Office for National Statistics said sales volumes, based on new methodology that includes automotive fuel, fell 1.8 percent on the month in January, more than three times faster than analysts' forecasts and the biggest monthly fall since June 2008. On the year, sales were up 0.9 percent, Reuters reported. Excluding fuel, sales tumbled 1.2 percent on the month and were up 2.6 percent on the year. The figures underline the fragility of Britain's recovery from recession and may raise fears the economy could shrink again when first-quarter GDP figures are released. The data will also likely reinforce expectations that interest rates will remain on hold for the most of this year. The ONS said unusually heavy snow at the start of the month pushed down sales of household goods and fuel. Sales of the former fell by 13.4 percent on the month, the biggest drop since January 1988. Fuel sales fell by 11.1 percent on the month as motorists stayed at home unable to get out in the snow. Food sales also had a downward impact, falling by 2.4 percent on the month. But the ONS said the snow boosted sales of clothing.
