Ed Balls 'did not leak data'

The Treasury was yesterday forced to deny that Ed Balls, the chief economic adviser to the Chancellor of the Exchequer, was the source of a leak of official data after the figure for September's monthly growth in retail sales was published by Reuters, the financial news agency, an hour before its official release.

The leak triggered a sharp rise in sterling bond yields as traders interpreted the strong number as a sign interest rates would rise next month. Such a leak is highly unusual and led to speculation that the source might have been Mr Balls, who had given Reuters an interview earlier.

The Office for National Statistics said it has immediately launched an inquiry.