Retail sales rebounded last month despite shoppers facing pressure from higher inflation, according to an industry report. The British Retail Consortium, working with consultancy KPMG, said like-for-like sales rose 1.3% in August, against a 0.9% fall for the same month in 2016.

Sales of autumn fashion ranges and back-to-school kit were big contributors to the rise, it said. But the body warned belt-tightening by consumers was still a risk.

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