LONDON, Sept 20 (Reuters) - British retail sales rose 1% in August, official figures showed on Friday. After a surge in inflation in 2022 which caused a hit to consumer spending power for much of the following two years, a slowdown in price growth and faster increases in wages have helped to restore some of the lost living standards.

A strong report could pave the way for a more modest rate cut, while a softer reading may spur the central bank into taking more drastic action.

Americans spent a bit more at retailers last month, providing a small boost to the economy just as the Federal Reserve considers how much to cut its key interest rate.