Shop prices rose last month but stability forecast

SHOP price inflation rose to two per cent in April on a year earlier compared to 1.2 per cent in March, according the latest survey from the British Retail Consortium (BRC).

Rising costs as a result of higher commodity prices were the main reason behind the increase.

The BRC’s director-general Stephen Robertson said: “With commodity prices, including oil and cocoa going up, food prices were almost bound to rise when compared with last month’s three-year low.”

The BRC anticipates more stable shop prices over the coming months: “The main effects of rising costs and the weak pound have now been felt. With demand still weak, shop prices should be more stable in future months, as long as there are no more big shocks.,” said Robertson.

Both food and non-food inflation rose to two per cent last month. Oil – up 70 per cent over the year – also influenced some non-food prices as manufacturing and transport costs went up, according to the BRC.