Shop prices rise with the heat

SHOP prices are rising for the first time in more than five years – mainly due to hot weather driving up food costs.

In the first annual rise since 2012, the cost of products went up 0.1 per cent, British Retail Consortium (BRC) figures show. Prices of non-food items fell 1 per cent but food rose 1.9 per cent.

Fresh food rose 1.5 per cent, while packet, frozen and tinned products increased 2.5 per cent, said the BRC, which represents most retailers.

It added: ‘Higher food inflation is the result of the hot, dry weather, which reduced yields of some foods produced in the UK, and the increases in the prices of oil and agricultural products on global markets earlier in the year.’

Harvests are down with carrots, broccoli, peas and lettuce suffering because of the high summer temperatures and lack of rainfall.

Further rises are in store, with the Centre for Economics and Business Research this week predicting the cost of home-grown products will rise by ‘at least’ 5 per cent.

The BRC’s chief executive, Helen Dickinson, also warned: ‘Current inflationary pressures pale in comparison to potential increases in costs retailers will face in the event that we leave the EU without a deal.

‘If that does happen, retailers will not be able to shield consumers from price increases.’