Shop Price Inflation Slows Amid Retailers' Cost Pressures

UK shop price inflation slowed to 1.4% in September from 1.5% in August, according to the British Retail Consortium.

The BRC's gauge is a narrow snapshot of prices collected between September 1 and September 7, but it shows that food prices drove much of the change.

Foode inflation slowed to 2.5% from 2.8% as promotions cut meat and dairy prices, although poor European harvests lifted fruit prices and high commodity prices kept chocolate and confectionery expensive.

The BRC's chief executive, Helen Dickinson, said retailers have absorbed successive cost increases but are running out of room to absorb the extra costs created by the Iran war.

The BRC wants finance minister John Healey to help with business rates in his October 28 tax and spending plan, arguing that this would keep prices down.