Interest rates must fall says BRC
Prices have risen, but only marginally in May, compared with this time last year. However, the rise is not enough for interest rates to stay at their present rate, according to the British Retail Consortium.

The BRC said that its price index was boosted by a modest increase in food prices of 1.7 per cent compared with last year, because Easter promotions were extended into May last year. Non-food was level with last year.

Food prices dropped by 0.6 per cent compared with April. BRC director-general Kevin Hawkins (pictured) pointed out that this was because more fruits and vegetables came into season, making them more readily available and therefore cheaper.

He said: 'Overall, retail price inflation remains low and with the current pressures on the high street, it is unlikely to increase - but the question still remains whether consumer confidence will. The May sales figures showed no sign of an uplift, with figures remaining in negative territory. We urge the Monetary Policy Committee to reduce interest rates at tomorrow's meeting to give retailers and consumers the boost they need.'

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