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Shop prices enter inflation for first time in five years

This is according to the latest figures from the British Retail Consortium.

Inflation cash money coins

The British Retail Consortium (BRC) has warned supply costs for retailers could rise if the UK leaves the EU in a 'no deal' situation, as shop prices reach inflation for the first time in five years.

According to analysis for the period between 6 August and 10 August this year, shop prices rose by 0.1%. Food price inflation rose from 1.6% to 1.9% in the same period, while fresh food inflation rose from 1.2% to 1.5%. The increase in food inflation has been attributed to the recent heatwave across the UK.

BRC chief executive Helen Dickinson said: “Despite significant increases in costs in the supply chain, this month’s figures show that retailers are keeping price increases faced by consumers to a minimum.

“However, current inflationary pressures pale in comparison to potential increases in costs retailers will face in the event we leave the EU without a deal. If that does happen retailers will not be able to shield consumers from price increases. 

"The EU and UK negotiating teams must deliver a Withdrawal Agreement in the coming weeks to avoid the severe consequences that would result from such a cliff edge scenario next March."

Read similar: Retailers want clarity after Brexit white paper

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