The impact of the fall in Sterling on commodity prices is driving up food prices according to the Scottish Retail Consortium.
Figures produced for the SRC by KPMG revealed that while Scottish sales declined by 1% on a like-for-like basis when compared to March 2016, total food sales rose by 1.8%.
Total non-food sales declined 5.2% in March compared to 2016, with this figure dropping to a decrease of 4.1% when adjusted for the estimated effect of online sales.
David Lonsdale, director of SRC, said that inflation in food prices is occurring “despite retailers’ efforts to absorb costs”.
“The concern is that consumers spending more on food are shifting spending from other items; potentially exacerbating the stresses affecting non-food retailers.
Lonsdale added that continued “flat sales” in the context of increased inflation would “definitely be cause for concern, both for retailers and the Scottish Government”.