NEW YORK (Reuters) - Retail sales at U.S. chain stores rose last week as the fighting in the war in Iraq drew to a close, but not enough to offset the cumulative drop over the prior two weeks, a report showed Tuesday.

Sales climbed 1.3 percent in the April 7 week, after falling 0.5 percent in the preceding week, Bank of Tokyo-Mitsubishi and UBS Warburg said in a joint report.

Compared with the prior year, sales for the week increased by 1.7 percent -- hurt by an Easter-related boost in sales and milder weather during the comparable week last year.

"The CNN/war effect -- which was not a big deal overall -- continued to fade, while the longer-run cautious spending by consumers did not," the report said.

Separately, Instinet Research said in its weekly Redbook report that sales at U.S. chain stores jumped in the week ended April 12 as consumers finally shopped for an Easter that arrives three weeks later this year than last.

Sales at major U.S. chain stores increased by 2.0 percent in the week ended April 12 than in the same week a year ago, the report said.

"The Easter effect became evident in specific holiday-related categories, such as Easter-theme toys, and also reportedly in sales of children's shoes and apparel," the report said.

The Redbook Average is compiled from a sample of general merchandise retailers representing about 9,000 stores. Same-store sales measure revenue at stores open at least a year.