MNI BRIEF: UK Shop Price Inflation Hits 10-Year High: BRC

Shop prices surged by 0.5% between January and February, taking the annual rate of increase to 1.8% from 1.5% in January, according to the British Retail Consortium's latest survey of retailers. That’s the biggest annual jump since November 2011 and underlines the challenges facing the Bank of England as price rises start to take hold across the economy.

Food prices accounted for much of the increase, rising by 0.3% in the month for a 2.7% annual gain, matching the January result and "remained the key driver behind higher prices, particularly for fresh food, which has been impacted by poor harvests, both in the UK and globally,” according to Helen Dickinson, chief executive of the BRC. “There is little sign of change, with the Bank of England predicting price rises to continue until at least the Spring."

Non-food prices jumped by 0.5% in February, lifting the annual rate of increase to 1.3% from 0.9% in the opening month of the year, the biggest rise since September of 2011.