// Shop prices rise in August, driven by non-food items
// This comes after driver shortages and the costs of Brexit-induced red tape
New research has shown that UK shop prices have risen last month by 0.4 per cent, with non-food items rising 0.6 per cent.
The increase comes as a result of driver shortages and the costs of Brexit-induced red tape, according to the latest data from the BRC.
While shop prices remain below those in 2020, down 0.8 per cent in August compared with the same month a year earlier, that marked a slowdown in deflation from the 1.2 per cent year-on-year fall recorded in July.
“There are some modest indications that rising costs are starting to filter through into product prices,” BRC chief executive Helen Dickinson said.
“Food retailers are fighting to keep their prices down as far as possible. But mounting pressures – from rising commodity and shipping costs as well as Brexit-related red tape, mean this will not be sustainable for much longer, and food price rises are likely in the coming months.
“Disruption has been limited so far, but in the run-up to Christmas the situation could get worse, and customers may see reduced choice and increased prices for their favourite products and presents.”
The BRC’s warning comes after the The Entertainer warned that prices could rise by 10 per cent over the next 18 months because of supply chain disruption, labour shortages and higher transport costs.
Dickinson called on the government to increase the number of HGV driving tests taking place, change the rules on funding for driver training and provide temporary visas for EU drivers, to help ease staff shortages which have led to gaps on shelves.