Shop prices are on the verge of increasing, the British Retail Consortium has said.
Non-food prices dropped by 1.5% in September, from 1.3% in August, as retailers introduced mid-season Sales.
Overall in September, shop prices dropped by the smallest amount recorded in the past four years – 0.1%.
“Overall shop price deflation reached an all-time low in September with prices now teetering on the edge of inflation,” BRC chief executive Helen Dickinson said.
“However, as more non-food retailers’ hedging facilities come to an end this autumn, and as public policy costs mushroom, consumers are likely to start feeling an additional pinch on these products.”
Mike Watkins, head of retailer and business insight at Nielsen, added: “The uncertainty around the buoyancy of consumer spend has meant that non-food retailers are keeping price increases to a minimum to help maintain sales growth.”
“The good news is that inflation is expected to peak over the next few months, and, with consumers still uncertain about when and where to spend, we expect competition for discretionary spend to intensify as we head towards the end of the year with more promotional savings for shoppers across all channels.”