British retail sales fell again in June as household finances were squeezed by the rising cost of living but stores expected sales volumes to stabilise next month, a survey showed on Monday.

The Confederation of British Industry's (CBI) monthly distributive trades index fell to -9 from -10 in May.

Martin Sartorius, CBI principal economist, said retailers would continue to face challenges in the coming months.

"Another contraction in sales volumes attests to the difficult trading environment being faced by the retail sector. Households' finances are still under pressure from high inflation," Sartorius said.

A measure of expected sales in the month ahead remained flat at zero.

The CBI said retail sales volumes were average for the time of year at +1% in June compared with -18% in May, and were expected to remain broadly in line with seasonal norms in July at -2%.

Britain's inflation rate came in higher-than-expected at 8.7% in May and April.

With price growth far above the Bank of England's 2% target, analysts expect the central bank to continue raising Bank Rate having already raised it 13 times in a row since December 2021.

(Reporting by Suban Abdulla; Editing by William Schomberg)