8 June 2005, 14:34  High street inflation picked up in May

High street inflation picked up in May after falling in April, although it remains subdued, a leading retail lobby group said. The British Retail Consortium said its shop price index for May rose 0.37 pct from April and was up 0.65 pct from a year ago. The price of food items fell 0.60 pct from April, while non-food items increased 0.94 pct. The decrease in food prices was mainly as a result of seasonal demand, especially in fruit and vegetables, while widespread discounting was also evident, with multi-buy offers on food and drink items, the BRC said. Among non-food items, however, recent discounting on clothing and footwear was not as prolific as last month due to mid-season sales coming to an end. Electrical goods also saw a slight increase in prices, as the heavy discounting in recent months started to come to an end, although promotions were still evident on kitchens, kitchen equipment, bathrooms and garden furniture. "Overall retail price inflation remains low and with the current pressures on the high street, it is unlikely to increase but the question still remains whether consumer confidence will," said BRC director general Kevin Hawkins.

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