LONDON British retail sales fell more sharply than expected in July and were 1.2% lower than in June, caused in part by heavy rain, figures from the Office for National Statistics showed on Friday.

Economists polled by Reuters had forecast that sales volumes would fall by 0.5% on the month.

Retail sales volumes were 3.2% lower than a year earlier, compared with economists' forecasts for a 2.1% decline.

“Retail sales fell sharply in July as poor weather impacted most sectors," ONS Deputy Director for Surveys and Economic Indicators Heather Bovill said

“It was a particularly bad month for supermarkets as the summer washout combined with the increased cost of living meant sluggish sales for both clothing and food. Department store and household goods sales also dropped significantly."

(Reporting by William Schomberg; editing by William James)