LONDON, Sept 22 Reuters British retail sales partially recovered in August after a rainy July washout, official figures showed on Friday, adding to signs that the country39;s consumers were mostly coping with the costofliving squeeze.

Sales volumes rose by 0.4 on a monthonmonth basis after a sharp 1.1 fall in July, the Office for National Statistics said. Economists polled by Reuters had forecast a slightly stronger 0.5 rise in August.

While sales overall remained subdued, the partial recovery was driven by food sales and a strong month for clothing, Heather Bovill, deputy director for surveys and economic indicators at the Office for National Statistics ONS, said.

These were partially offset by internet sales, which dropped slightly as some people returned to shopping in person following a very wet July. Fuel sales also fell, with increased prices hitting demand, she said.

Britain39;s inflation rate stood at 6.7 last month, down from a peak of over 11 last October but still the highest among the world39;s large rich economies.

However, August39;s data represented the sixth time so far in 2023 that sales volumes rose on a monthtomonth basis, suggesting resilience in consumer demand.

Earlier on Friday, market research firm GfK said its measure of consumer confidence was the highest since January last year.

But the impact of the steady rise in interest rates by the Bank of England since December 2021 has probably yet to be fully felt and could hurt consumer…