British shop prices have risen at the fastest speed since February 2024

Prices in British retailers have risen at the fastest speed since February 2024 this month because food costs continue to increase rapidly and the decline in non-food goods appeared almost ending, industrial data showed on Tuesday.

The overall shop price in September was 1.4% higher than the previous year, up from an inflation rate of 0.9% in August, said the British retail consortium, has the potential to increase the problem of broader British inflation.

Food price growth remains at 4.2% while non-Food prices dropped 0.1%, an annual decline that was smaller than the 0.8% decline recorded in August.

“The household found shopping more expensive,” said BRC executive chief Helen Dickinson. “The impact on their retailers and supply chains from global factors and national insurance and higher wage costs is played in consumer prices.”

Minister of Finance Rachel Reeves announced an increase in the contribution of social security for entrepreneurs in his annual budget last year, withdrawing broad complaints from retailers.

BRC urges Reeves to avoid fresh levies that will encourage prices in the next budget in November.

Bank of England estimates that the broader consumer price index – which includes a variety of goods and services that are wider than the size of BRC – will rise to 4% this month, up from 3.8% in August and double the target of the central bank.

Policy makers are divided into whether the slowing work market is sufficient to ensure inflation will return to the target, or if they need to slow down or stop their cutting to interest rates.

Deputy Governor Boe Dave Ramsden said on Monday that food prices seem to have a big effect on the perception of public inflation, especially since the surge in 2022.

The price of milk and beef appears to be the most affected by the increase in energy and the cost of livestock labor, while the new government levies on packaging will encourage prices in October, said BRC.
Source: Reuters