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Retail inflation highest in three years

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British Retail Consortium has said that inflation rose in December at the fastest pace for nearly three years, as high commodity and seasonal food prices offset sales discounts.

The shop prices increased about 2.30 per cent year on year, a significant jump from 1.80 per cent in November 2006. This is said to be the sharpest rise since March 2004 and it is the sixth consecutive month that shop prices have shown an annual increase. According to the monthly figures the shop prices rose about 0.30 per cent last month.

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