Shop price inflation in the United Kingdom edged down in September mainly due to falling prices of non-food articles, a report from the British Retail Consortium (BRC) showed Wednesday.
The BRC-Nielsen shop price inflation slowed marginally to 1 percent in September from 1.1 percent in August. Food inflation was unchanged at 3.1 percent in September for the third consecutive month. Meanwhile, non-food prices fell at a faster pace of 0.2 percent compared to 0.1 percent drop in August.
Falling prices for non-food goods and stable food inflation are slowing overall shop price rises, BRC Director-General Stephen Robertson said.
Food inflation remains at a two-year low for the third month running despite inflationary pressures building up in the supply chain from rises in global commodities such as wheat and soyabeans, he added.
Robertson noted that promotions, including multi-buy offers, fuel coupons and price matching are commonplace and helping to keep grocery bills down. Non-food prices have now been cheaper than a year ago for eight months in a row as prices of furniture, electricals and clothing are cut to generate sales.
Confidence among consumers increased in September, according a survey by GfK NOP. Official figures showed that the Olympics dented retail sales in August as the event discouraged consumers from shopping online.
The British economy contracted less than previously expected in the second quarter. According to the latest estimates, the gross domestic product shrank 0.4 percent sequentially following 0.3 percent fall in the first quarter and 0.4 percent drop in the fourth quarter of 2011.
The official figures also revealed that consumer spending fell 0.2 percent quarter-on-quarter during the period.
by RTT Staff Writer
For comments and feedback: firstname.lastname@example.org