BRC says retailers continue to shield shoppers from rising costs.
Shop price inflation in October hit its highest rate since January but non-food inflation is negative, according to the British Retail Consortium (BRC)-Neilsen Shop Price Index.
Shop inflation last month rose to 2.2 percent, up from 1.9 percent in September. Non-food inflation increased from 0.7 percent to 1.1 percent and the BRC said that non-food prices rose.
BRC director-general Stephen Robertson said: “Shop prices are rising but retailers are shielding customers from the full impact of the increasing commodity costs that are causing that inflation. Yet inflation in the non-food sector continues to be low, indeed allowing for the VAT rise since this time last year it’s actually negative.
“Weak consumer confidence and a sluggish housing market mean retailers are competing even more fiercely for the limited discretionary spending available. That situation is unlikely to change in the run up to Christmas, with retailers clamouring to win the attention of cash-strapped consumers through discounting and promotions.”