Retailers endured a disappointing Christmas, new data shows, as families “battened down the hatches” amid cost of living pressures.

Sales grew by just 1.7pc in December compared to a year earlier, the British Retail Consortium (BRC) said, despite inflation likely being at least twice as high. It suggests people bought a lower volume of things from shops than they did a year earlier.

Helen Dickinson, BRC chief executive, said it was an underwhelming end to a difficult year for shop owners.

Ms Dickinson said: “The festive period failed to make amends for a challenging year of sluggish retail sales growth, as weak consumer confidence continued to hold back spending.”

Retailers reported disappointing sales of typical gift items like clothes, jewellery and gadgets.

Separate figures from Barclays show spend on clothing fell by 2pc in December, while overall retail spend increased by only 0.6pc.

Paul Martin, UK head of retail at KPMG, said: “As we start a new year, cautious consumers are battening down the hatches and retailers can expect to see significant downward pressures on demand in the opening months of this year.”

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