RETAILERS suffered their worst Christmas for more than 20 years as sales volumes fell one per cent last month, official figures show.

Clothing retailers and non-specialist stores were the worst hit with only Internet retailers showing any significant growth, according to the Office for National Statistics (ONS).

The last time retailers endured a tougher Christmas was in 1981 when seasonally-adjusted sales volumes fell 1.7 per cent compared with the previous month.

The figures are likely to confirm the worst fears of economists who have seen high street retailers such as Marks and Spencer and Next guide the market towards lower annual profit.

An earlier survey by the British Retail Consortium found that retailers had experienced their toughest Christmas for a decade, although a contrasting picture was painted by the CBI.

The poor sales figures are likely to spark fresh calls for the Bank of England to ease the pressure on household budgets by cutting interest rates. However, Bank of England governor Mervyn King has already ruled out a knee-jerk reaction to the figures.

The ONS said sales over the Christmas period, which covers November 28 to January 1, were "unusually low".

The value of retail sales in December was estimated at £30.8bn, up 2.9 per cent on a year ago.

Total retail sales rose by 0.3 per cent in the three months between October and December against the previous quarter, the lowest rate of growth for six years.