Shop prices in Scotland rose in October for the fourth consecutive month, accelerating to an annual rate of 1.1%, from 0.7% in September. This is the same rate of inflation as the UK as a whole and is the highest rate of inflation since this survey began in December 2005.
As in the rest of the UK, food is by far the main driver of shop price inflation in Scotland, outweighing the continued deflation in non-food, where discounting and promotional activity – although not as high as last year - remain prevalent.
Month-on-Month:
For the third consecutive month, prices in Scotland rose month-on-month, increasing by 0.2% from September. This is a slight deceleration from the September figure itself, which was 0.3% above August. This marginal slowdown in the monthly inflation rate reflects an increase in the level of promotional activity in non-food, mainly in clothing and footwear.
Fiona Moriarty, Director, SRC comments:
“Shop price inflation in Scotland is now at the same high level as in the rest of the UK, caused by rising food prices. Non-food has continued to see discounting and promotional activity at unprecedented levels for this time of year, as retailers try to entice nervous and cautious consumers to spend.”
Mike Watkins, Senior Manager, Retailer Services, Nielsen comments:
“Disposable income is coming under pressure. However, Scottish consumers are benefiting from higher levels of promotion in non-foods such as clothing, which is going some way towards making up any shortfalls in spending power as cost price inflation begins to impact on some food prices.”
British Retail Consortium
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