3rd Oct 2023 05:10
(Alliance News) - Shop price inflation in the UK cooled for the fifth consecutive month in September, data showed on Tuesday.
According to the latest British Retail Consortium-NielsenIQ tracker, the annual shop price inflation rate cooled to 6.2% in September, from 6.9% in August. September's print was below the three-month average rate of 6.9% and the lowest in a year.
Non-food inflation eased to 4.4% in September from 4.7% in August, while food inflation decelerated to 9.9% from 11.5%.
"Food prices dropped on the previous month for the first time in over two years because of fierce competition between retailers. This brought year-on-year food inflation down to single digits and contributed to the fifth consecutive monthly fall in the headline rate, helped by easing cost pressures," commented Helen Dickinson, chief executive of the British Retail Consortium.
"We expect shop price inflation to continue to fall over the rest of the year, however there are still many risks to this trend – high interest rates, climbing oil prices, global shortages of sugar, as well as the supply chain disruption from the war in Ukraine."
By Heather Rydings, Alliance News senior economics reporter
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