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.
For comments and feedback contact: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.