RETAIL sales rose by 9,1% in the year to June at constant prices, Statistics SA said today. In the three months to the end of June, retail sales rose by 9,8% compared to the same period 12 months ago, also at constant prices.

The annual increase for May was revised down to 10,2% from 10,6%.

Consumer demand has been the main driver of faster growth in the economy over the past couple of years, spurred by the lowest interest rates in more than two decades, low inflation and an emerging black middle class.

However, demand is likely to slow in the months ahead on the back of a full percentage point increase in interest rates since June.