Shop prices rose two per cent last month following inflation of 1.2 per cent in March.

The figures, from the British Retail Consortium’s (BRC’s) Shop Price Index, show that the two per cent rise affected both non-food and food prices.

According to BRC director-general Stephen Robertson, with oil up 70 per cent over the year pushing up manufacturing and transport costs and a VAT rate higher than it was a year ago, it was not surprising that non-food prices had increased, while the rise in commodity prices had the same effect on food.

"But the main effects of rising costs and the weak pound have now been felt, Mr Robertson said.
“With demand still weak, shop prices should be more stable in future months, as long as there are no more big shocks."

At Nielsen, which helped to compile the BRC’s figures, senior manager for retailer services Mike Watkins added: “The SPI has mirrored official inflation data produced by the Office for National Statistics (ONS) showing a period of volatile inflation from month to month.

“Factors such as sterling’s depreciation, rising commodity prices – particularly oil, weather and the VAT reversal have all had an influence on shop price inflation.&rdquo