The three-month trend rate growth slowed to 2.5 per cent for like-for-like sales, from 2.7 per cent in September, and to 5.2 per cent from 5.5 per cent for total sales, reflecting the continued growth of retail space.

Food sales continued to drive overall sales. Clothing and footwear sales improved, but the growth was against a poor October 2005. Furniture and big-ticket homewares were weaker than in September, but house textiles and smaller home accessories held up well.

August's interest rate rise does not seem to have yet fed through to sales, but consumers remain pessimistic about economic prospects in the months to come.

BRC director general Kevin Hawkins said: "Sales growth remains on the same restrained level as in previous months and must be set against the continued inflation in the retail industry's cost base, especially wages, property and energy. There's no sign of anything resembling a boom in consumer spending and no weakening in retail price competition. We therefore see no case for another increase in interest rates."

Helen Dickinson, head of retail at KPMG, said: "This is another month of consistent growth on the high street. Clothing and footwear have done better this month as the more seasonal weather has started to kick in. These growth figures are against a slightly stronger comparative than we've seen in previous months, which is encouraging. However, the key determinant of the success of 2006 will be driven by what happens next month in the lead-up to Christmas."

BRC/KPMG Retail Sales Monitor UK - October

Year-on-year like-for-like (October 2006 v October 2005) UP +2.6%

Year-on-year total sales (October 2006 v October 2005) UP +5.0%

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