Scottish shop prices are rising faster than those in the rest of the UK, a survey published today has found.

Scottish shop prices are rising faster than those in the rest of the UK, a survey published today has found.

Figures from the Scottish Retail Consortium revealed shop prices were 4.3% higher in August this year compared with the same month in 2007.

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 SCR 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% since the end of 2005.

"That compares with 2.8% for the whole of the UK - clear evidence that competition is intense and retailers are delivering a favourable deal for Scottish customers."

The Scottish Price Index, compiled by researchers Nielsen, examines 500 of the most commonly bought goods across 7,500 price points.

Each index reflects monthly and annual changes in shop prices.

Mike Watkins, senior manager of retailer services with Nielsen, said consumers may start spending less on their shopping this Autumn.

"As shoppers return from their summer holidays many will be reviewing their household budgets," he added.

"So the next few months will be an important time for retailers in Scotland as they try to keep prices stable by absorbing as much of the increase in their supply chain costs as possible."