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The Guardian - UK

Business

Sarah Butler

Retailers say tax rises could further fuel inflation as shop prices jump

Inflation BRC Helen Dickinson NIQ

A man shopping in the chilled food section of a supermarket — Annual food price inflation, which has been steadily accelerating all year, levelled out at 4.2% in September. Photograph: SolStock/Getty Images

Retailers have told the government that tax rises could further fuel inflation as the pace of shop price rises stepped up in September with increases on home improvement and gardening goods offsetting stabilising food prices.

Annual shop price inflation rose to 1.4% in September, up from 0.9% in August, according to the latest monthly report from the British Retail Consortium (BRC) and analysts NIQ.

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