UK retail sales were weaker than expected in July as price cuts by retailers failed to draw in consumers.

The sales total in July was unchanged from June to stand 4% higher on the year, according to new figures from the Office of National Statistics (ONS).

The ONS said the sales trend was generally the same in July as in June. It also revised June's monthly growth figure downward by 0.2% to 0.5%.

Analysts had forecast a monthly rise of 0.2% and a 4.3% rise for the year.

The ONS said clothing and footwear sales fell by 0.2% in July from June, despite sharp price cuts in the retail sector.

The data adds to the growing argument that a series of interest rate rises by the Bank of England's Monetary Policy Committee late last year, and earlier this year, is cooling the economy.

Demand is slowing

It follows the release of benign inflation and earnings data earlier this week.

Economists generally agreed that the figures indicated consumer demand was slowing.

"There is a bit of a drop back from the bumper month we had in June, although the June numbers have been revised out slightly. There are some signs that consumer activity is easing a little bit," said Julie Collins-Thompson at BNP Paribas.

The MPC has held interest rates at 6% for the last six months, but hinted at possible rate rises to come later in the year.

Analysts said the data may raise hopes that the MPC would continue to keep rates on hold.

"It's a very encouraging number. I think this will still be significant (in the MPC's interest rate decision)," said Fraser Coutts from 4CAST.