Small retailers will have to put up with increased costs for the foreseeable future, according to one expert.
Richard Dodd, head of media and campaigns at the British Retail Consortium (BRC), explained that retailers of "almost every kind of non-food item" are being hit by falling sales and increased costs.
He said: "There is no immediate sign but clearly what retailers will be hoping for is that the effect of the three interest rate cuts that we have had since last December will filter through and play a part in boosting consumer confidence."
Mr Dodd added that fuel prices seem set to rise, although the rate at which the cost of food is increasing should slow towards the end of the year.
Last month, the Confederation of British Industry (CBI) warned that the cost of manufactured goods is likely to rise by 36 per cent over the next quarter as producers struggle with the increased cost of raw materials.
