UK Shop Price Growth Slows Amid Retailers' Promotions

UK shop prices have seen a slowdown in growth, according to a recent survey by the British Retail Consortium (BRC). In September, prices rose 1.4 per cent over the last year, down from 1.5 per cent in August.

This decline reflects retailers' efforts to avoid passing on higher costs to consumers through widespread promotions and price cuts aimed at attracting customers.

Mike Watkins from NIQ, a research firm that conducts the survey, noted that sales growth slowed after a hot summer, with the fourth quarter expected to bring tighter household budgeting.

Food prices grew 2.5 per cent in September, a decline from last month's 2.8 per cent, largely due to increased competition among retailers offsetting pressures from higher global energy prices and poor harvests across Europe.

The report may provide some reassurance to Bank of England officials that the Iran price shock has not spread more widely across the UK economy, so far.