British shop prices have risen for the first time in five years as British retailers warn that no-deal Brexit will have “severe consequences” to the economy.
Food prices rose in August as a long spell of hot, dry, weather reduced yields of some foods produced in the UK, while oil and agricultural costs increased across global markets.
Overall shop prices did rise 0.1 percent this month, but this follows a more substantial decline of 0.3 percent in July.
Following this, the British Retail Consortium warned that customers will face yet more severe price hikes if the government fails to agree on essential trade deals with the European Union.
BRC boss Helen Dickinson praised retailers for keeping price rises to a minimum, adding there would be worse to come if the UK crashes out of the EU with a no deal (hard Brexit).
“Despite significant increases in costs in the supply chain, this month’s figures show that retailers are keeping price…