Attention, shoppers: UK prices hit 19-month high, fuelling inflation fears

Price inflation in British shops rose to its highest level in 19 months, as consumers pay at the checkout for a slew of new taxes that have ramped up retailers’ costs.

The rate of inflation grew to 1.4 per cent in September from a year earlier, an acceleration from August, the British Retail Consortium (BRC) said on Tuesday. DIY and gardening products saw price rises while back-to-school items including laptops were reduced.

Retailers are battling with ballooning costs as a result of tax and payroll changes introduced by the UK government.

More than 60 companies, including Tesco and John Lewis, urged the government not to raise taxes on retailers in the autumn budget in an open letter last month.

“Households are finding shopping increasingly expensive,” BRC CEO Helen Dickinson said. “The impact on retailers and their supply chain of both global factors and higher national insurance and wage costs is playing out in prices for consumers.”