Shop prices climb in further inflation headache for UK government

Food inflation hits 4%

Sticky inflation showed little sign of budging in July as the rising cost of staples such as meat and tea kept shop prices high.

Food inflation increased from 3.7% year-on-year in June to 4% in July, with wider shop price inflation jumping from 0.4% to 0.7% in the same period too, according to the latest data from the British Retail Consortium (BRC).  OBR: Spiralling debt just one concern for the UK's fiscal future Covering the period from 1 to 7 July, non-food inflation increased to -1% year-on-year relative to a decline of -1.2% in June.  Chief executive of the BRC Helen Dickinson said: "Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month. Staples ...