HIGH street sales rose last month despite a further increase in prices, official figures have shown.

The volume of retail sales in April was 5.9 per cent higher than a year earlier, the biggest annual increase since January 2000.

At the same time, the Office for National Statistics said the average weekly value of sales was 6.3 per cent higher than at the same point a year ago.

The increase was fuelled by a further rise in prices on the high street, with the value of food, drink and tobacco sales up sharply.

In total, prices were 0.4 per cent higher last month than a year earlier, slightly down on March's annual growth figure of one per cent.

Simon Rubinsohn, chief economist at City stockbroker Gerrard, said despite the slight rise in high street prices, there was still "little barrier" to a further cut in interest rates.

He said food price inflation was mainly due to the lingering impact of the foot-and-mouth crisis and that non-food prices were continuing to decline.

This "lack of pricing power" meant there was little upwards pressure on inflation, leaving the Bank of England's monetary policy committee with room for a further interest cut.