Annual shop price inflation falls for the first time in six months

13 October 2008

Annual shop price inflation has fallen for the first time since March, says the British Retail Consortium (BRC).

According to the BRC-Nielsen Shop Price Index (SPI), prices in the shops did not change at all in September, which means the annual rate of inflation dropped to 3.6% in September, down from 3.8% in August.

On the grounds that inflation is slowing down, the BRC is calling for the Bank of England to lower the base rate, which would reduce the cost of various kinds of borrowing, potentially stimulating the economy and helping many borrowers manage their debts more effectively.

The BRC’s Director General, Stephen Robertson, said: “Given that its own forecasts show inflation is near its peak the Bank of England should cut interest rates immediately and significantly to provide a much needed boost to customers and retailers smarting from the global financial turbulence. This will build customer confidence in the run up to Christmas.”

---

Think Money provide a range of debt solutions, including debt management plans, debt consolidation and IVAs (Individual Voluntary Arrangements). If you are struggling with debt, contact one of our expert debt advisers now.

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider.