“You would probably see people cut back in other areas to be able to spend on food.”

In May, there was a 3.5 per cent sales leap inspired by warm weather but it was shortlived as the credit crunch tightened consumer finances.

Economists had been expecting a fall in sales volumes of only three per cent.

But ongoing economic turmoil and fears of a recession have forced consumers to rein in their spending.

Families have been battling with soaring fuel and energy costs this year, as well as

rampant food inflation.

And a leading retail analyst predicts the situation is likely to worsen.

Ian Kendrick, author of the Active Resilience Retail Risks report, warns customer demand will dip and business costs rise. 

Liberal Democrat treasury spokesman Vince Cable said: “This is yet further evidence that personal debts and spiralling food and fuel prices are now hitting pockets.

“People and businesses are paying the price for an economy which Gordon Brown allowed to get dangerously out of control.

“The real danger now is that with consumer spending drying up there will be serious job loses in the retail sector.” 

Non-food stores as a whole suffered a 4.5 per cent sales drop between May and June, the ONS said, which was the biggest fall on record. Sales volumes at household goods stores, including furniture and electrical items, fell five per cent, the biggest slump since April 1991 when Britain was in the grip of the last recession.

The mail order sector suffered a 6.4 per cent fall.

Philip Hammond, Tory shadow chief secretary to the Treasury, said: “These figures are yet more evidence that the good times are over. 

“Faced with soaring prices, stagnant earnings and rising housing costs, families are forced to tighten their belts. 

“Businesses, families and now the high street are looking to the Government for help – but all Gordon Brown’s got to offer is yet more tax hikes.”

Economists predict that the sales fall could lead to the Bank of England reducing interest rates.