LONDON, (Reuters) – British retailers saw slower sales growth than usual in February, but they said that demand was higher than average for this time of the year due to the Omicron wave of coronavirus infections. This is according to a Confederation of British Industry survey released on Thursday.

CBI retail sales balance monthly fell half to +14, from +28 January. That’s a much bigger drop than what economists expected in a Reuters poll.

The sales of the appropriate time of the year increased strongly in February compared to January. However, the balance rose to +16 from below -23.

Martin Sartorius from CBI said that shoppers have been redirected to the high streets by the ease of COVID-19 regulations, which included the elimination of guidance for work-from-home.

Comparisons to January last year, when all non-essential retail outlets were shut down due to lockdown restrictions, helped boost January’s headline sales numbers.

Retailers face other difficulties, however. Sartorius explained that the conflict in Ukraine could lead to rising energy prices and transport cost, increasing retail operating expenses and reducing households’ spending power.

CBI quarterly figures revealed that retailers increased selling prices almost as much in the late 2021 period, when there were the largest price increases since 1990.

According to the CBI, prices will rise faster in the next three-months.

Previous data released by the British government showed that British retail sales rose faster in January than predicted due to the Omicron virus cases. Analysts warn of tough times ahead, as inflation rises up to a 30 year high and squeezes households’ disposable income.