UK shop-price inflation rises to 2.1% in October

New British Retail Consortium figures show shop-price inflation accelerated in October, with food and non-food prices also rising. Retailers and industry groups say higher costs are increasingly feeding through to prices, as Chancellor John Healey prepares his first Budget.

• The British Retail Consortium reported annual shop-price inflation of 2.1% in October, up from 1.4% in September.· 2 sources
• Annual food-price inflation rose to 2.9% from 2.5%; non-food inflation increased to 1.7% from 0.8%.· 2 sources
• The BRC said retailers had absorbed higher costs but were increasingly passing them on. The reports link the costs to energy, food ingredients and supply pressures.· 2 sources
• The BRC urged Healey to act before the Budget; City A.M. reports its proposals include cancelling business-rate increases and reducing employment and packaging-related costs.· 1 source
• The Guardian reports that a study of low-income families found many participants had bought reduced-price items, changed food purchases or left heating off during the previous month.· 1 source