Shop prices rose for the first time in five years in August, the latest figures from the British Retail Consortium (BRC) show.
The BRC-Nielsen Shop Price Index for August found that prices increased by 0.1%, led mainly by a rise in food prices and up from a decrease of 0.3% in July.
Non-food items continue to decline in price, albeit at a lower rate. Food price deflation eased to 1% year-on-year, down from 1.4% in the previous month. On a monthly basis, non-food prices rose by 0.8% in August compared with July.
Helen Dickinson, chief executive of the BRC said: “Despite significant increases in costs in the supply chain, this month’s figures show that retailers are keeping price increases faced by consumers to a minimum.
”However, current inflationary pressures pale in comparison with the potential increases in costs retailers will face in the event the we leave the European Union without a deal. If that does happen, retailers will not be able to shield consumers from price increases.
“The EU and UK negotiating teams must deliver a withdrawal agreement in the coming weeks to avoid the severe consequences that would result from such a cliff-edge scenario next March.”