Price rises fail to halt demand in Scotland

DEMAND for non-food goods is holding up better north of the Border than in the rest of the UK, according to the latest shop price inflation figures from the British Retail Consortium (BRC).

Prices in stores rose at a slightly faster rate in July in Scotland compared to the rest of the UK, but experts said Scotland was just playing catch-up with sharper UK rises earlier.

UK-wide, food prices rocketed by 10.8 per cent compared to the same month last year, led by increasing prices of pork, margarine, cooking oils and fats.

Fiona Moriarty of the Scottish Retail Consortium said more resilient consumer confidence, buoyed by a stronger housing market had given demand for non-food items a boost.

Non-food price inflation was primarily driven by furniture and floor coverings and books, stationery and home entertainment.

She said: "Scotland and the whole of the UK are seeing food prices rise but Scotland is seeing rises in non-food prices too. That explains slightly higher overall shop price inflation in Scotland but this is just Scottish shop prices playing catch-up."