UK shop price inflation rose 3.2 per cent in July, according to the BRC-Nielsen Shop Price Index.

This was up from 2.5 per cent in June and was driven by annual food price inflation, which hit 9.5 per cent.

Non-food annual price inflation was down 0.1 per cent in July, with non-food prices 0.8 per cent lower than in June.

BRC director-general Stephen Robertson said: “Our figures show that some non-food goods, including electricals and clothing, are cheaper than they were a year ago. Both food and non-food prices are going up more slowly than gas or petrol bills.”

The report highlighted the growing pressures faced by the grocery industry, which is battling rising costs against lower customer confidence.

Robertson added: “Overall, food prices are rising but retailers are keeping increases well below the extra supply and operating costs they face.”

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