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Beauty makes up part of rising shop-price inflation

Beauty makes up part of rising shop-price inflation

The climbing cost of health and beauty products helped shop-price inflation climb during March, new figures from the British Retail Consortium have shown.

While the monthly rate of food inflation remained unchanged at 3.5% year-on-year, prices climbed by an average of 0.6% in February.

Meanwhile, non-food inflation climbed 0.2% year-on-year, the first time that prices have been subject to inflation for more than a year.

Experts believe next month will be crucial, with the prolonged period of cold weather likely to lead to deeper discounting on spring lines which have proven hard to shift without early season sun.

March saw clothing and footwear fall to their lowest levels since August.

The British Retail Consortium director general Helen Dickinson said demand was improving and discounting was less widespread amongst retailers.

“Non-food prices have edged into inflationary territory for the first time in 15 months, driven by gradual growth across a number of categories rather than any one seeing a substantial increase,” she said.

“It bears out anecdotal evidence that demand is strengthening and promotions are less widespread than last year.

“Food inflation is unchanged since February, but this is primarily due to a decrease in prices for tinned and packet goods balancing out a fresh food rise.

“There are still price pressures which will continue to work through, but I would expect food inflation to remain fairly steady in the medium term.”