Overall inflation rose to 3.8 per cent from 3.2 per cent in July. Food inflation climbed 10 per cent, but this is only a 0.5 per cent increase on July, compared with the period from June to July when food inflation increased 2.5 per cent. Non-food inflation was up to 0.6 per cent from 0.1 per cent. In non-food, electricals and clothing and footwear remained the only two deflationary sub-categories.
BRC director-general Stephen Robertson said: “There is some comfort from these figures. For the first time since March, the growth rate of food inflation slowed, offering the prospect that we may be nearing the peak of food inflation. Despite retailers facing rising fuel and electricity bills, overall shop prices in August are well below the official rate of inflation, as retailers shield customers from the full effects of rising costs.”
Nielsen senior manager of retailer services Mike Watkins said: “Over the summer, we have seen other household bills increasing faster than shop prices. As a result, shoppers have started to limit spend on non-food, seek out new promotional offers in food and shop at different food retailers. Shop price inflation is likely to continue through the autumn, but we are hopeful that the acceleration in cost prices that has driven food prices up so sharply is starting to slow.”
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