Retail sales grew only slightly last month, as cash-strapped consumers cut back on their spending, figures show. Sales volumes excluding petrol rose just 0.2% in July, a slowdown on the 0.8% increase in June, said the Office for National Statistics (ONS). Sales of household goods, clothing and footwear all declined. Consumer spending continues be affected by a number of factors, including higher inflation, job losses and limited wage rises. Inflation in July, as measured by the government's preferred Consumer Prices Index, increased to 4.4% from 4.2% in June. This is more than double the 2% target rate. Meanwhile, the number of people unemployed in the UK rose by 38,000 to 2.49 million in the three months to June. Compared with July 2010, sales excluding fuel were 0.2% lower. When fuel sales are included sales were unchanged from a year ago. Continue reading the main story 'Disappointing data' The 0.2% rise in UK retail sales was less than the 0.3% increase expected by analysts. The official figures for July are also lower than the 0.6% increase estimated by the British Retail Consortium earlier this month. The ONS said volume sales of clothing and footwear fell 0.3% in July compared with June, with household goods declining by the same amount. Food sales were up 0.7%. Since the start of the year a number of well-known retailers have gone into administration, including fashion chain Jane Normal, interior designer Habitat, and wine seller Oddbins. Others such as Mothercare, entertainment group HMV and confectioner Thorntons have announced store closures. Investec analyst Victoria Cadman said: "It's another set of disappointing data, with the UK consumer limping along at best. "What leaps out is that consumers are unwilling to spend on big ticket items - household goods are down 4.1% on the year." Ms Cadman added: "The outlook for retail does not look particularly rosy, concerns about the growth outlook and the decline in real wages are weighing on the consumer." The UK economy grew only 0.2% in the second quarter of the year, down from the 0.5% growth rate recorded between January and March.