Demand sees non-food inflation rise

Non-food shop prices have risen for the first time in 15 months as consumer demand picks up and promotions decline, according to the British Retail Consortium (BRC).

By The Newsroom

Published 3rd Apr 2013, 01:01 BST

Overall shop price inflation rose to 1.4 per cent in March from 1.1 per cent in February.

Food inflation was unchanged at 3.5 per cent in March while non-food inflation rose 0.2 per cent last month compared with a 0.4 per cent fall in February, the highest rate and the first positive figure in 15 months.

Helen Dickinson, BRC director general, said: “Non-food prices have edged into inflationary territory for the first time in 15 months, driven by gradual growth across a number of categories.

“It bears out anecdotal evidence that demand is strengthening and promotions are less widespread than last year.”

Flat food inflation was attributed to a decrease in prices for tinned and packet goods balancing out an increase in the price of fresh food.

Food inflation