Selling price inflation also eased to its lowest level since August 2020. However, retailers remain cautious about the future, with expectations of a slight decline in sales next month and continued job losses.

According to the survey, retail sales grew modestly in the year to May (+8%), but are expected to fall slightly in June (-4%). Orders placed upon suppliers declined moderately (-11%), and further cutbacks are expected (-16%).

Alpesh Paleja, CBI Lead Economist, said: “May’s increase in retail sales adds to the swathe of data pointing to an improvement in activity over the near-term. Falling inflation, and continuing real wage growth will contribute to a healthier consumer outlook, in turn supporting the retail sector further.

“That being said, retailers are restrained about their business situation over the coming quarter. Headlines sales are expected to fall moderately next month, and it’s concerning that retailers’ investment intentions have deteriorated noticeably.

“The mixed mood from our survey demonstrates just how nascent the economic recovery is. All parties should use this general election campaign to embrace policies which will embed sustainable growth, foster the investment we need to develop a labour market which delivers higher living standards, and to accelerate our transition to net zero.”