Warning over shop price rise

Higher food bills adding to strain

SHOP prices have risen for two months in a row for the first time in five years.

The average price of goods across the board edged up from 0.1% year on year in August to 0.2% in September, according to figures out today.

While it may not sound much, shop prices have been falling for most of the past five years. But it might not feel that way for millions of families whose wage rises have lagged behind inflation in general – and it depends what people are buying.

For example, food price inflation stands at 1.9% and increased by 0.4% between August and September alone, the report from the British Retail Consortium (BRC) and number crunchers Nielsen found.

Fresh food price inflation rose from 1.5% to 1.6% year on year. And “ambient” food – packaged and tinned – saw prices surge 2.4% higher.

The main cause of deflation over the past five years has been non-food products, including electrical goods.

These prices fell 0.9% in the year to September, from 1% in August.

Helen Dickinson, chief executive of the BRC, warned shoppers should prepare for prices to keep rising.

She said: “Global commodity conditions, in particular oil prices, would indicate that there are likely to be further inflationary pressures in the short to medium term which could lead to further price rises. “This would be worrying enough for hard-pressed British consumers if we weren’t staring down the barrel of a no-deal Brexit.” Oil has risen steadily in recent weeks and stands at a near fouryear high of $85 a barrel. The price has been pushed up due to concerns about the impact of US sanctions on oilrich Iran. Crude oil prices feed through to everything from pump prices for motorists to transporting goods to shops and the cost of making plastics.