High street price inflation increased slightly in September, with overall prices 0.4 per cent per cent higher than a year ago, the same year-on-year rise in August, according to the BRC Shop Price Index (SPI).
After slowing in the previous four months, food inflation increased in September, rising to 2.7 per cent compared with 2.1 per cent in August. It continues to be the sole cause of inflationary pressure on the high street.
In non-food there is no sign of any let-up in price deflation, with prices recording a year-on-year decline in every month so far this year.
In September, non-food prices were 0.7 per cent lower than at the same time a year ago, a larger rate of deflation than the 0.4 per cent in August.
BRC director-general Kevin Hawkins said: “Overall, shop price inflation is being kept low yet again by intense price competition and promotional activity within non-food. However, this is being outweighed by food, where cost inflation is starting to work through to retail prices, especially in food produce. A large proportion of these cost pressures are being absorbed by retailers, helping to keep prices down. However, we have yet to see the full effects of high interest rates on consumer spending and a rate cut now by the Bank of England would provide some much needed relief to consumers and retailers alike.”
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