Retail sales across Britain shrank last month as the country was gripped by bad weather and general election uncertainty.

The latest Office for National Statistics figures show sales volumes declined by 1.2 per cent in June, three times the 0.4 per cent fall predicted by analysts.

By comparison, retail purchases increased by 2.9 per cent the previous month when the UK enjoyed its warmest May on record, and promotional activity drove a big uplift to trade.

While June was drier than average, the first two weeks were colder than usual due to northerly winds bringing Arctic air across the country.

Of the eight retail industries tracked by the ONS, only automotive fuel registered a rise in sales last month, growing by 2.1 per cent.

By comparison, department store sales fell by 3.4 per cent overall and 9.4 per cent online, while clothing, footwear, and furniture shops were also affected by subdued demand.

Meanwhile, sales at food outlets slid by 1.1 per cent, which the ONS largely blamed on supermarkets, as well as 'poor weather and economic conditions' making Britons cautious with their spending.

Matt Jeffers, retail strategy and consulting managing director at Accenture UK & Ireland, said retailers will be 'bitterly disappointed' by the figures 'as many had hoped the array of cultural and sporting events taking place in the month would provide a welcome boost'.

Among the high-profile events were the Glastonbury Festival, European Football Championships, and the UK leg of Taylor Swift's Eras tour.

Barclays has estimated the Eras tour's 15 dates in June and August will boost the UK economy by nearly £1billion this year from eager fans spending massive sums on tickets, travel, hotels and outfits.

However, the 'Taylor Swift effect,' which contributed to hotel prices spiking, has been blamed by some analysts for keeping the UK inflation rate at its 2 per cent target for the second successive month.

This has reduced the Bank of England's likelihood of cutting interest rates in August, providing a much-needed boost for borrowers and encouraging consumers to spend more money at shops.

Financial markets now say the probability of a rate reduction at the BoE's upcoming meeting on 1 August is 35 per cent, instead of 50 per cent as previously forecasted. 

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: 'With high interest rates looking set to stick around through the summer, shelling out on a new sofa or dining room table is hardly top of priority lists right now.'