Shop prices increase for second consecutive month

Shop prices have increased for a second consecutive month after five years of deflation, figures show.

Inflation inched up to 0.2% in September from 0.1% the month before, according to the BRC-Nielsen Shop Price Index.

Prices of non-food items eased slightly to 0.9% from August’s 1%.

However, food prices remained inflationary at 1.9%, the result of unusual weather patterns in the first half of the year.

British Retail Consortium chief executive Helen Dickinson 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. Food prices alone have now been inflationary for more than a year and the BRC estimates that consumers could face up to a 29% increase in prices of products such as beef in the event of a no-deal.”

Mike Watkins, head of retailer and business insight at Nielsen, said: “Looking ahead we expect shoppers to maintain their grocery spend by making savings elsewhere in their overall household expenditure.”