Shoppers spent nine percent more on food in April this year than in the same month a year earlier, as overall consumer spending rose by $7.5 million.

The April Retail Sales Index was released by the Department of Statistics yesterday and showed people are spending more as a result of increases in fuel and food prices.

The report stated: "Gross receipts for food stores increased 9.1 percent in April 2008 compared to the same month of the previous year. The upward movement in sales receipts was due to two extra shopping days during the month combined with a four-percent rise in food prices."

Total spending for the month rose 8.6 percent to $94.7 million, the largest gain of the last year, and rebounded from the 1.4 percent fall in sales in March. After adjusting for the 4.1 percent rate of inflation recorded in April, the volume of retail sales rose by 4.3 percent.

The price of fuel jumped 12 percent compared to April 2007 and service stations reported a 10.5 percent increase in gasoline sales.

Despite rising costs on basics such as food and fuel, residents continued to purchase non-essential goods.

Sales at other stores rose seven percent, particularly sales of furniture and appliances. And residents did not reduce their spending overseas, declaring $6.3 million worth of goods, the same figure recorded in April 2007.

Car sales increased for the first time this year, by 14 percent over April 2007. This follows eight successive months of vehicle sales declines and, according to the report, was due primarily to higher demand for new models being stocked by dealers.

Revenue in the building materials sector rose by almost nine percent, indicating higher levels of construction activity.