Shop price inflation gathers pace

(Reuters) - Shop price inflation jumped last month to its highest rate since October 2008, led by a sharp rise in food prices, a survey showed on Wednesday.

The British Retail Consortium said higher petrol and commodity prices lifted shop price inflation to 2.9 percent in June from 2.3 percent in May.

Food inflation rose to 5.7 percent from 4.9 percent -- the biggest rise since May 2009 -- while non-food inflation rose to 1.3 percent from 0.8 percent.

"Overall shop price inflation is being driven by surging world commodity prices, the effect of the weak pound on import costs and higher VAT -- all beyond retailers' control," said BRC director general Stephen Robertson.

The BRC predicted that there would be further upward price pressure, especially on the cost of non-chilled goods, due to higher grain prices, and also second-round effects from wage rises in commodity-exporting countries.

It's inevitable as we have all been living in "cloud cuckoo land"All the signs are there that we are going to have a difficult time ahead.Recent reports suggest more people are having to make do and mend and their purchases are now on a "need" basis not "WANT" If people don't buy then manufacturers and producers don't invest so more become unemployed so have no purchasing power and so we get the ineviatable downward spiral!

WE'RE ALL DOOMED MR MANNERING!!!