A survey has shown that during the month of December, shop inflation rose. This happened despite the fact that retailers gave heavy discounts to people and that in a way stopped the prices from sky rocketing.

Data collected by the British Retail Consortium has shown that during the month of December, the prices went up by 2.1 per cent than they were in the year ago period. During November, inflation stood at 2.0 per cent as against
2.2 per cent in October.

On the other hand, food inflation has continued to be at 4 per cent as compared to the month of November.

Higher cost of agricultural commodities is the reason for such high inflation. This is worrying because the jobs are still not very secure and the household income is not very high and at this point of time having such high prices is going to hurt the people badly.

The good news is that BRC expects the shops to be able to curb the prices by 2011. Director General of BRC, Stephen Robertson said that the retailers are protecting the British consumers in all possible ways. They are not facing the actual rise of commodity costs and are still buying things at subsidized rates.