–Adds Detail To Version Transmitted At 1100 GMT
–UK CBI Distributive Trades: Feb Sales Vol Balance +6% vs +37% Jan
–UK CBI: Mar Expected Sales Balance 0% vs +25% for Feb
–CBI: Feb Quarterly Average Selling Prices Expected +74 vs +42 Nov
–CBI: Feb Average Expected Selling Prices Highest Since Feb ’91
–CBI: Feb Quarterly Average Selling Prices Reported +73 vs +45 Nov
–CBI: Feb Quarterly Average Selling Prices Highest Since May’91

LONDON (MNI) – Annual growth in high street sales volumes slowed in
February while shop prices hit their highest levels since back in 1991,
the Confederation of British Industry reported.

The quarterly CBI Distributive Trades Survey showed 77% of
retailers said average prices were up on a year ago, with only 4% saying
they fell, giving a 73% balance, the highest since May 1991. Prices are
expected to rise at a similar pace in the next three months, with a net
74% predicting a rise, the highest outturn since February 1991.

While high street inflation balances have risen to near 20 year
highs activity has declined.

The survey showed the February monthly sales balance slowed
sharply, dropping to a net 6% from 37% in January, its lowest outturn
for eight months.

Lai Wah Co, head of economic analysis at the CBI, said “The
positive effect of seasonal discounting on the high street which had
previously boosted sales has now waned.”

“Retail sales are likely to be more challenging over the coming
months. At the same time prices are set to rise considerably if the VAT
increase and the soaring cost of raw materials are passed on to
shoppers,” she added.

The data highlight the dilemma facing the Bank of England’s
Monetary Policy Committee, with already elevated inflation rising
further at a time when the recovery is looking choppy.

The quarterly survey showed retail sector employment falling. The
reported employment balance in the quarterly survey fell to -12 from -5
in the previous quarterly survey, conducted back in November. The
expected employment balance fell to -10 from -4 in November.

— London newsroom: 00 44 20 7862 7491; e-mail: drobinson@marketnews.com

[TOPICS: M$B$$$,M$BDS$,M$$FI$,MT$$$$,MABDS$]