Warning over shop price rise

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 per cent year on year in August to 0.2 per cent 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 per cent and increased by 0.4 per cent between August and September alone, the report from the British Retail Consortium and number crunchers Nielsen found.

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

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

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

BRC chief executive Helen Dickinson said 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 four-year high of $85 a barrel. The price has been pushed up due to concerns about the impact of US sanctions on oil-rich Iran. Crude oil prices feed through to everything from pump prices for motorists to transporting goods to shops and the cost of making plastics.

Rise in cost of packaged & tinned food

SALES at plumbing firm Wolseley’s owners sprung a leak last month. Heating giants Ferguson said growth slowed in September after a strong year. “It is too early to attribute it to anything in particular,” boss John Martin said.

Around 90 per cent of Ferguson’s business is in the US, which had a bumper year. However, their UK arm saw sales drop 5.3 per cent last year. Group profits fell 16 per cent to £915million. Euro Australian Dollar Bulgarian Lev Canadian Dollar Croatian Kuna Czech Koruna Egyptian Pound New Zealand Dollar Polish Zloty South African Rand Swiss Franc Thai Baht Turkish Lira UAE Dirham US Dollar 1.100 1.753 2.050 1.614 7.891 27.278 20.222 1.901 4.485 17.943 1.241 39.649 7.044 4.593 1.270