Sales remained flat in February

In the three months to February sales growth slowed to 0.9%, down from 1.1% in the three months to January.

Like-for-like sales rose by just 0.6% in February against the previous year, and this followed a weak February 2005 when sales fell 0.3%.

The BRC said there was a "continuing squeeze on consumer spending".

Costs rising

"Contrary to the Bank of England's expectations, there is no sign of an upturn," said BRC director general Kevin Hawkins.

"Reports of a recovery in the housing market have yet to work through to the big-ticket categories, which have been depressed for the past 15 months.

"Meanwhile the industry's fixed-cost base continues to rise well above the general rate of inflation.

"Shop price inflation, in contrast, remains around zero."

Valentine's effect

However, with the like-for-like figure showing an increase, February's figures represents the fourth straight month of like-for-like growth, a trend not seen since October 2004.

But head of retail at KPMG - which helps to compile the survey figures - Helen Dickinson said retailers faced a cost base that was growing faster than the sales rate.

According to the BRC, spring and summer clothing ranges have yet to start selling in any volume, with footfall down and "consumers still in a winter mindset".

However, Valentine's Day gave a boost to sales of lingerie as well as chocolates, wine and champagne.