(Sharecast News) - Price pressures for UK consumers picked up this month as food prices continued to climb and non-food price deflation eased, with the British Retail Consortium warning of more pain ahead for shoppers.
The BRC-NIQ Shop Price Monitor released on Tuesday showed that the annual rate of shop price inflation increased to 1.4% in September from 0.9% in August.

While food inflation was unchanged at 4.2% year-on-year - holding steady after seven straight months of increases - non-food deflation eased significantly to -0.1% from -0.8%, with a year and a half of falling non-food prices likely to come to an end.

"DIY and gardening saw rising prices, while some back-to-school categories continued to see reductions as retailers offered promotions on electricals such as laptops ahead of the new academic year," said BRC chief executive Helen Dickinson.

Retailers, who have had to contend with higher national insurance and wage costs since April, are facing a new packaging tax from October which will put further upward pressure on inflation, Dickinson said.

"While retailers continue to absorb higher costs as much as possible and deliver value to customers, any further tax rises in the upcoming Budget would keep shop prices higher for longer. Ultimately, it is British households who will bear the consequences-positive or negative-of the Chancellor's decisions."

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