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Shop price inflation rises

Shop price inflation rises

Category: Money

Updated: 05/05/2010
First Published: 05/05/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Consumers can expect to pay more for food and non-food products, after figures revealed that shop price inflation edged upwards during April.

Overall shop price inflation rose to 2% in the month, up from 1.2% in March. Inflation on food grew to 2%, from 1.2%, while non-food jumped from 1.3% to 2%, figures from the British Retail Consortium-Nielsen Shop Price Index show.

The end of some seasonal and Easter discounts has been cited for the slight spike in inflation figures, although it comes after the lowest shop price inflation for three years.

"Rising costs edged overall shop price inflation up, but it's still below the rates seen in December and January," commented Stephen Robertson, director general of the British Retail Consortium.

"With commodity prices, including oil and cocoa going up, food prices were almost bound to rise when compared with last month's three-month low.

"Even so, food inflation is a quarter of what it was this time last year, while some produce – milk, cheese and eggs – is actually cheaper than in 2009."

Wider inflation has risen to 3.4% recently, well above the government's long term target of 2% and is predicted to remain high for some months to come.

In last month's Bank of England meeting, members of the Monetary Policy Committee expressed concern at the level of inflation, a problem that has been magnified by employees having to accept pay cuts or wage freezes.

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