Retailers may have to rely on peelable labels with special offers if they are to avoid losing sales on the high street.

According to the latest figures from the British Retail Consortium and Nielsen shop prices were up by 2.5 per cent in April as the cost of basic commodities and transport rocketed.

Food inflation was particularly high at 4.7 per cent, but it was also warned that non-food items could be affected in the coming months, particularly in the clothing sector.

Ian McCafferty, the CBI's chief economic adviser, said: "Despite slightly better year-on-year sales growth in April, this survey shows things are far from rosy on the high street."

Electrical products were found to have avoided drastic sales decreases as retailers used promotional labels to slash prices and tempt consumers into stores.

Last month, trade body R3 found that 80 per cent of people have changed their buying habits in the past 12 months, with more than half purchasing fewer non-essential products.

Denny Bros Ltd, 05 May 2011