SHOP prices are rising faster in Scotland than in the rest of the UK.
In August, prices rose 4.3 per cent in Scotland compared to the same month last year.
In the UK the rises reported were just 3.8 per cent, according to figures from the Scottish Retail Consortium (SRC).
Compared to July's figures, prices were j
ust 0.5 per cent higher on both sides of the Border.
Despite the rise, the SCR said the cost of bread, milk and other goods in Scotland was still lower than in Britain as a whole, because of earlier price falls.
Fiona Moriarty, director of the SRC, said: "Although shop prices are rising faster in Scotland that doesn't mean Scottish prices are higher than in the rest of the UK.
"The sharp price falls experienced in Scotland throughout the first half of 2007 mean Scottish prices are up only 2.4 per cent since the end of 2005.
"That compares with 2.8 per cent for the whole UK, clear evidence that competition is intense and retailers are delivering a favourable deal for Scottish customers."
Howard Archer, chief economist for Global Insight, said that the figures were likely to contribute to the Bank of England's monetary policy committee making a decision to hold interest rates today.
He said: "The further sharp rise in the shop-price deflator in August is not good news for the Bank of England.
"While shop prices continue to be pushed up primarily by high food prices, the Bank of England will also note that non-food prices rose year-on-year for a third month running in August, and at an increased rate, after extended falls."
The index, compiled by researchers Nielsen, examines 500 of the most commonly bought goods across 7,500 price points nationally.
The full article contains 311 words and appears in The Scotsman newspaper.
