According to the Distributive Trades Survey, produced by the Confederation of British Industry (CBI), strong demand has led to increased retail prices. The survey showed that 53% of UK retailers said year-on-year sales volumes were up in May with just 21% reporting a decline. The rounded balance of +31 marked the sixth consecutive month of growth, although it was lower than April's three-year high (+44) and expectations for May (+36).

Overall, retailers said their sales for the time of year are good (a net balance of +21) and orders placed with suppliers increased at their fastest rate since June 2004.

Despite this, there are some signs that sales growth, both in terms of volume and prices will abate over the coming months. The headline balance of +31 for sales volumes in May was lower than in April and the expected balance for June is +23. If realised, this would represent the slowest rate of growth for three months.

The balance of retailers anticipating higher average selling prices next month compared with a year ago was +23, lower than the balance reported for May (+33), but stronger than the trend of recent surveys.

Wholesalers reported further growth in annual sales volumes to May but the balance of +21 was lower than April's high of +34 and below expectations (+28). However, demand for clothing, textiles and footwear was down (a balance of -44).

The survey was conducted on May 1-16 and involved 160 businesses, representing 20,000 outlets and 40% of retail jobs.