Retail sales rebounded in January after falling in December, posting their biggest monthly rise since the shops reopened last spring.

Despite rising prices due to inflation, volumes jumped by 1.9% last month following a drop of 4% in December, according to the Office for National Statistics (ONS), triggered by surging rates of Covid-19.

The figures for January were 3.6% above their pre-pandemic February 2020 levels.

“It was a good month for garden centres, department and household goods stores, with particularly strong trading for furniture and lighting,” said Darren Morgan, director of economic statistics at the ONS.

Food sales fell below their pre-pandemic level for the first time, though, as more people returned to eating out, Mr Morgan said, adding that there was also anecdotal evidence suggesting higher demand for takeaways and meal-subscription kits.

Following a rise in high street footfall towards the end of the month, the proportion of online sales dropped to its lowest level since March 2020, when e-commerce activity exploded as consumers were forced to stay at home.

The proportion of retail sales online fell to 25.3% in January 2022, its lowest proportion since March 2020, when it was 22.7%, continuing a broad downward trend since its peak in February 2021 at 36.5%.

COVID tests must remain free and self-isolation rules shouldn’t be ditched, NHS leaders warn

COVID-19: Mass testing and lockdown plans in Hong Kong criticised as ‘ridiculous nonsense’ by expert

COVID-19: Catching coronavirus increases the chances of depression, study suggests

Despite its downward trend, the percentage of retail sales made online was still higher than before the coronavirus pandemic, which stood at 19.8% in February 2020.

Meanwhile, an increase in road traffic helped push fuel sales up from December.

“Many retailers saw something of a spending boom during the course of the pandemic, but now it looks like the dust from this explosion is finally beginning to settle,” said Karen Johnson, head of retail, wholesale, and healthcare at Barclays.

“Consumer spending appears to be dropping back down to normal, whatever normal means in 2022,” she added.

“Looking ahead, the outlook is uncertain. Interest rate rises and increasing costs are front of mind across the industry. What impact these pressures will have on consumer spending is the question for the months ahead.”

Related posts:

Challenger Monument banks £28m from investors BoE’s Bailey warns EU against ‘dubious’ attempt to grab multi-trillion clearing business British Gas owner bolsters net zero goals as it posts another annual loss Travellers at ‘mercy of rogue operators’ as Which? finds ‘serious problems’ with govt test providers Murdoch’s News UK mulls bid for The Week Sunak hails ‘promising sign’ as April reopening sees fastest GDP growth since last summer Brussels puts digital sales tax plan on ice after US pressure Ex-climate change secretary Rudd to join £250m London SPAC Pfizer antiviral pill to treat COVID could be available ‘early in 2022’ if approved M&S hails turnaround as it returns to profit but sees supply chain and labour cost strains ahead City policy chief McGuinness’s 2022 exit triggers succession race Global markets rattled as Ukraine tensions rise