According to the BRC Shop Price Index, prices were 0.69 per cent higher in July 2005 than July 2006. This is the first month that there has been a year-on-year increase since September 2005 and it is the largest increase since July 2004.
Compared with June this year, prices fell by 0.7 per cent in July. Month on month, the non-food sector was down 1.25 per cent, cancelling out a 0.44 per cent rise in grocery prices.
'The ever increasing cost pressures, such as fuel and energy bills, continue to be absorbed by retailers and, with heavy discounting prevalent throughout July, these costs are clearly not being passed onto the consumer,' said BRC director general Kevin Hawkins.
Hawkins pointed out that, in July 2005, there was also extremely heavy discounting, explaining the year-on-year growth in prices.
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