Shop price inflation remains stable at 2.7%
The monthly survey by the British Retail Consortium and Neilsen has revealed that overall shop price inflation remained at 2.7% in September. Food inflation was also unchanged at 0.5% but non-food inflation fell to 1.3% from 1.4% in August..
BRC director general Stephen Robertson commented: “The pressures on prices from world commodities, import inflation and January’s VAT rise haven’t gone away but they haven’t worsened either.”
The BRC said it did not expect fundamental conditions to change much before Christmas.
Robertson added: “Next month we’ll see what effect the supermarket price war based on straight price cuts rather than other forms of promotion is having on food inflation.”
Last week Tesco announced the launch of its Big Price Drop and invested £500 million in reducing the price of 3,000 products including milk, bread, fruit and vegetables.
