LONDON (dpa-AFX) - UK shop prices grew at a slightly slower pace in September due to promotions and strong discounting, the British Retail Consortium said Tuesday.
Shop price inflation edged down to 1.4 percent from 1.5 percent in August. Nonetheless, the rate remained above the three-month average of 1.3 percent.
Non-food inflation softened to 0.8 percent from 0.9 percent and food inflation weakened to 2.5 percent from 2.8 percent.
BRC Chief Executive Helen Dickinson said food inflation slowed in September as competition between retailers continued to deliver value for shoppers.
'Promotions helped bring down meat and dairy prices, though poor harvests across Europe pushed up fruit prices and high global commodity prices kept chocolate and confectionery prices elevated,' she said.
In non-food, strong discounting reduced the cost of back-to-school essentials, including books, stationery, footwear and electrical, Dickinson added.
The fourth quarter is expected to bring tighter household budgeting so retailers will still need to absorb cost increases wherever possible, NIQ Head of Retailer and Business Insight Mike Watkins said.
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