People have carried on spending on the High Streets, but there are signs that shoppers are becoming more cautious.

The likelihood remains the bank will bring rates down at next month's meeting

Philip Shaw, Investec

Retail sales in September rose by 4.6% over the year, the Office for National Statistics (ONS) said.

That is the lowest rate of annual growth since January 2001.

Sales were 0.4% higher than in August,

Over the month sales were 0.4% higher, compared with August's revised rate of 0.7%.

Worries about debt

A slowdown in spending gives the Bank of England's Monetary Policy Committee (MPC) more room to cut interest rates.

"While the figures show greater consumer resilience than expected, the likelihood remains the bank will bring rates down at next month's meeting," said Philip Shaw, chief economist at Investec.

At the MPC's October meeting, three of the nine members voted for a cut in interest rates but others argued that a cut would fuel consumer spending and lead to more debt.

Warm weather

The ONS said that department stores saw a 3.8% increase in sales between August and September - their highest increase for more than six years.

Sales rose at both big and small department stores, although there was no explanation for the increase.

Clothing and footwear sales fell by 1.1% in September.

A number of clothing retailers have reported poor sales in September, blaming the drop on the unusually warm weather.

An estimated �21.3bn ($35.7bn) was taken at cash tills across the UK last month, 4.5% more than September a year ago.