Prices on the high street rose by about half the overall rate of inflation last month as retailers shielded customers from higher costs.

According to the British Retail Consortium's closely watched shop price index, goods in the high street cost 0.61 per cent more last month than they did in July.

Prices last month were 1.66 per cent higher than those seen a year ago - compared to an average annual rate of underlying inflation of 2.9 per cent seen between May and July.

Official inflation rates for last month have not been published yet.