Retail prices rise in February

Prices rose marginally for the first time in three months in February, according to the British Retail Consortium. Overall, shop prices were 0.62 per cent higher in February than the previous month. However, year on year, the month's prices were down by 0.05 per cent. Non-food items were even lower than a year before, with process falling by 1.63 per cent compared with February last year.

Food prices increased for the second month in a row, as grocers reacted to the slowdown in demand after Christmas. The BRC noted that food prices also increased to cope with an increase in the price of sugar.

BRC director general Kevin Hawkins said: 'It's no surprise that February saw a slight increase in shop prices, following January's heavy discounting. However, despite the end of the Sales and the tightening squeeze on retailer's margins, prices are still lower than this time last year.'