John
01-12-2011, 07:56 AM
Shop price inflation edged higher in December, although heavy discounting by retailers prevented an even bigger rise, a survey showed on Wednesday.
The British Retail Consortium said shop prices in December were 2.1 percent higher than a year ago, up from an annual 2.0 percent rise in November but below October's 2.2 percent.
Food price inflation was steady at 4 percent, the same rate as in November, the BRC said. The high cost of some agricultural commodities has kept food price inflation at a higher rate.
With consumers worried about their jobs and household income at a time of public spending cuts, the BRC said it expected shops to try to limit price rises in 2011.
"Retailers are protecting British consumers from the full force of global commodity cost increases, with unprecedented levels of discounting taking the sting out of grocery shopping," BRC Director General Stephen Robertson said in a statement.
"Extreme weather and poor harvests have driven coffee up 52 percent, wheat 45 percent and soya beans 38 percent, yet the price of food is up only four percent."
Non-food inflation rose to 1.1 percent in December from 0.9 percent in November, driven by higher prices for furniture, floor coverings and health and beauty products.
December's 2.1 percent figure is below the annual consumer price inflation rate which rose to 3.3 percent in November. That marked the 11th month in a row where inflation remained at least one percentage point above the Bank of England's 2 percent target.
The central bank, which has kept interest rates at a record low of 0.5 percent since March 2009, faces a balancing act between bringing inflation back down to target while trying to secure the economic recovery.
Source - Yahoo.
The British Retail Consortium said shop prices in December were 2.1 percent higher than a year ago, up from an annual 2.0 percent rise in November but below October's 2.2 percent.
Food price inflation was steady at 4 percent, the same rate as in November, the BRC said. The high cost of some agricultural commodities has kept food price inflation at a higher rate.
With consumers worried about their jobs and household income at a time of public spending cuts, the BRC said it expected shops to try to limit price rises in 2011.
"Retailers are protecting British consumers from the full force of global commodity cost increases, with unprecedented levels of discounting taking the sting out of grocery shopping," BRC Director General Stephen Robertson said in a statement.
"Extreme weather and poor harvests have driven coffee up 52 percent, wheat 45 percent and soya beans 38 percent, yet the price of food is up only four percent."
Non-food inflation rose to 1.1 percent in December from 0.9 percent in November, driven by higher prices for furniture, floor coverings and health and beauty products.
December's 2.1 percent figure is below the annual consumer price inflation rate which rose to 3.3 percent in November. That marked the 11th month in a row where inflation remained at least one percentage point above the Bank of England's 2 percent target.
The central bank, which has kept interest rates at a record low of 0.5 percent since March 2009, faces a balancing act between bringing inflation back down to target while trying to secure the economic recovery.
Source - Yahoo.