Shop price inflation eases in September - BRC

(Sharecast News) - UK shop price inflation eased in September as retailers kept prices low despite rising cost pressures, according to figures released on Tuesday. The BRC-NIQ shop price index showed that shop price inflation fell to 1.4% year-on-year in September from 1.5% growth in August. This was above the three-month average of 1.3%.

Food inflation decreased to 2.5% following growth of 2.8% in August, while non-food inflation eased to 0.8% in September from 0.9% the month before.

Fresh food inflation fell to 2.6% this month from 3% in August, while ambient food inflation eased to 2.2% from 2.5%.

Helen Dickinson, chief executive of the British Retail Consortium, said: "Shop price inflation edged down this month, with food inflation falling as competition between retailers continued to deliver value for shoppers. Promotions helped bring down meat and dairy prices, though poor harvests across Europe pushed up fruit prices and high global commodity prices kept chocolate and confectionery prices elevated. In non-food, strong discounting reduced the cost of back-to-school essentials, including books, stationery, footwear and electricals.

"Retailers have absorbed wave after wave of extra costs, but there is a limit to what businesses can shoulder. With higher business rates set to hit in April, alongside rising employment costs, energy bills and packaging taxes, the Budget is a fork in the road. The Chancellor can help keep prices down by freezing the rates rise and removing shops from the business rates surtax, or risk pushing even more costs onto consumers."