Retail sales across UK recorded the fastest annual growth rate since May 2008, as has been confirmed by official figures shared by the Office for National Statistics. Sales surged 0.4% from the figure recorded in September, and 3.4% from October last year. Rapid rise in clothing and footwear sales has been the main reason behind the hike.

While the annual growth in the clothes and shoes departments was 3.5%, food stores across the country witnessed a 1.6% growth in sales. The biggest year-on-year rise for October was, however, registered by online shopping portals, which stood at 15.8%.

"The figures confirm that High Street spending is still holding up reasonably strongly in the face of some pretty adverse conditions for consumers", said Jonathan Loynes, Chief European Economist at Capital Economics. But he was quick to warn that this could be temporary, and a result of the festive season.

Experts are expecting sales figures to go down again for sometime, especially since, starting January 01, VAT would return to its normal 17.5% after staying at 15% for over a year now, since November 2008.

Economists have been quick to warn that the consumers are in for a tough 2010, which is likely to bring low growth in wages, more unemployment, high taxes and rise in interest rates.