Latest Nielsen report highlights retail inflation

How far will consumers' money continue to stretch? Picture By: Peter Macdiarmid/ Getty

A rise of 0.2% has been calculated from August to September 2010.

Following a rise in oil prices and the cost of cotton earlier this year, overall shop inflation increased marginally in September to 1.9% from 1.7% in August – the highest rate for five months.

British Retail Consortium director-general Stephen Robertson said: "Past increases in commodity prices are now putting pressure on overall shop prices but the worst of this may have passed.

"Even so, weak demand, poor consumer confidence and strong competition between retailers are likely to hold back shop price inflation for the rest of the year.”

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