Retail Sales Rebound in January but High Inflation Dampens Consumer Spending Power

Shop sales rebounded 3.4% in January after record drop in December, as shoppers bought food and took advantage of new year sales
Food sales at supermarkets rose strongly, while department stores benefited from January promotions
Inflation remained high at 4%, so people paid more for less - value of purchases up 3.9% but volume only up 3.4%
Sales increased across most retail sectors, with supermarkets, household goods, sports shops and department stores reporting robust trading
Economists divided on whether bounce signals turning point for retailers and consumer spending or if caution will remain