Shop prices edge higher
Shop price inflation rose to 2.2% in October from 1.9% in September – the highest level since January, according to the BRC-Nielson shop price survey.
Food inflation increased to 4.4% in October from 4.0% in September. Non-food inflation increased to 1.1% from 0.7% in September.
Stephen Robertson, British Retail Consortium Director General comments: “Shop prices are rising but retailers are shielding customers from the full impact of the increasing commodity costs that are causing that inflation.
“Wheat is up 47 per cent compared with a year ago, affecting the price of staples such as bread – and some meat products, as feed costs work their way up the supply chain.
“Cotton has risen 90 per cent over the last 12 months yet inflation in the non-food sector continues to be low, indeed allowing for the VAT rise since this time last year it’s actually negative.
“Weak consumer confidence and a sluggish housing market mean retailers are competing even more fiercely for the limited discretionary spending available. That situation is unlikely to change in the run up to Christmas, with retailers clamouring to win the attention of cash-strapped consumers through discounting and promotions.”
