Meanwhile, prices in the shops increased by 3.3% compared to last year, the largest annual rise since March 2012.
Liberal Democrat Leader Vince Cable commented:
“This fall in retail sales shows shoppers across Britain are feeling the Brexit squeeze.
“A toxic combination of rising prices and stagnant wages is severely constraining household spending.
“Year on year retail growth is also looking weak compared to previous years.
“Given the UK’s unhealthy over-reliance on consumer spending, the government must clarify where future economic growth is going to come from.”