Supply chain issues filter into prices

Cost pressures triggered by ongoing supply chain disruption are filtering into consumer prices, according to the British Retail Consortium (BRC.)

While September shop prices fell, they demonstrated the slowest rate of decline since January 2020.

Shop Price annual deflation eased to 0.5 per cent in September compared to August’s decrease of 0.8 per cent. This is a slower rate of decline than the 12- and six-month average price decreases of 1.4 per cent and 0.8 per cent, respectively.

Non-Food deflation slowed to 1 per cent in September, compared to a fall of 1.2 per cent in August. This is a slower rate of decline than the 12- and six-month average price declines of 2.4 per cent and 1.2 per cent.

Following five months of deflation, food prices increased by 0.1 per cent in September, up from a decline of 0.2 per cent in the previous month.

“September saw overall prices fall, but the decline is slowing,” said Helen Dickinson, chief executive of the BRC. “There are now clear signs the months-long cost pressures from rising transport costs, labour shortages, Brexit red-tape, and commodity costs are starting to filter through to consumer prices.”

Dickinson added: “Supply chains have been put to the test recently, with CO2 and HGV shortages. Government needs to find a long-term solution to the HGV driver shortage by expanding the size and scope of the new visa scheme for drivers from abroad so they can fill the gaps while new British drivers are trained.”

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