FXstreet.com (Barcelona) - Shop prices have increased at a twice as fast year on year pace in January than in December due, mainly to the recent weakness of the Sterling, according to data released by the UK British Retail Consortium.
Retail prices index have increased 1.1% in January, from the 0.5% increase posted in December, with food prices being the largest inflationary contribution; 7.2% up year on year. Excluding food, prices of all other products declined 2.1% from January 2008.
According to Stephen Robertson, BRC's Director General, the low value of the Pound has given an increase on the prices og imported prices: The effects of the weak pound are starting to filter through to the costs of imports, slowing the rate of price falls for some non-food goods and contributing to pushing up the prices of some food products. In particular the fall in sterling has increased overseas demand for UK beef and pushed up the price of some imported commodities.