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Retailers have confounded expectations by enjoying a bumper Christmas in terms of sales, with shoppers spending 4.1 per cent more than last year.

In the three months to December £6.7 billion was spent every week on Britain's high streets, the Office for National Statistics (ONS) revealed.

The official data shows that the seasonally adjusted index for retail sales rose 1.4 per cent during the same period, with sales rising 1.1 per cent between November and December.

Online retailers led the growth in non-store sales, with internet and catalogue users spending 9.3 per cent more that they did 12 months ago.

Sales at food and non-food stores meanwhile rose 5.2 per cent and four per cent respectively during the Christmas shopping period.

The surprise rise in festive season sales comes after two interest rate rises in the latter half of 2006 and rising inflationary pressures.

Earlier this month the Bank of England rose interest rates again to 5.25 per cent, while also revealing that consumer price index (CPI) inflation had hit an 11-year high of three per cent.

Howard Archer, chief UK and European analyst at Global Insight, admitted that today's retail figures were "substantially healthier" than expected, but also increase the prospect of further rate rises in February and March.

"Nevertheless, we continue to believe that the upside for consumer spending will be limited during much of 2007, as higher interest rates strengthen the already powerful headwinds that many consumers face - relatively moderate real earnings growth, high utility bills, an increasing tax burden and rising debt levels," he explained.