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UK shop price inflation accelerated in October, clouding the debate about price pressures ahead of the Bank of England's Monetary Policy Committee debates interest rates early next month. Shop prices rose by 0.4% between September and October, up from a monthly rise of 0.1% in September. On an annual basis, deflation eased to -0.4% from -0.5% in September.
"Tight margins mean retailers may not be able to absolve all of these new costs, so prices will continue to rise," said Helen Dickson, chief executive of the British Retail Consurtium.