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MNI BRIEF: Supply Bottlenecks Affecting UK Shop Prices: BRC

(MNI) London

UK annual shop deflation rate decelerates; Food prices rise slightly

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A months-long shortage of supplies and labour has finally begun to feed into retail prices, according to the BRC, as food prices rose by an annual basis for the first time in five months. Total shop prices declined by 0.5% in the year to September, significantly less than the 0.8% decline recorded in August, and the most shallow fall since pre-pandemic. Prices rose by 0.1% between August and September, below the 0.4% monthly gain last month.

"There are now clear signs the months-long cost pressures from rising transports costs, labour shortages, Brexit red-tape, and commodity costs are starting to filter through to consumer prices," said Helen Dickinson, chief executive of the British Retail Consortium.

Food prices increased by 0.2% between August and September, and by 0.1% on an annual basis, the first rise since March. Non-food prices declined by an annual rate of 1.0%, following a 1.2% last month.