Price hikes in shops at the lowest prices for almost a year

New data shows that the pace of price increases in British shops has slowed to its lowest level since October, but they are still significant.

The British Retail Consortium announced that prices rose by 6.9% for the year to August, down slightly from 8.0% in July.

The price of meat, potatoes and certain cooking oils has risen less sharply. However, it is not likely that price rises will be slowed sharply in view of the threat to Ukraine’s grain exports.

Russia and other countries had struck a deal last month allowing grain to pass freely out of Ukraine, known as the Black Sea Grain Initiative, until now.

That, combined with the Indian decision to impose export restrictions on rice, meant that there was now “dark clouds” in front of us, BRC claimed.

It was also attributed to the increase in alcohol taxes by the Retail Trade Association.