15 July 2024, 02:56
By Furniture News Jan 02, 2024

Falling shop price inflation at risk from growing cost pressures

Annual shop price inflation was unchanged at 4.3% in December reports BRC-NielsenIQ, with shop price growth remaining at its lowest level since June 2022.

Non-food inflation rose to 3.1%, up from 2.5% in November, and at its lowest since September 2022.

BRC chief executive Helen Dickinson says: “Overall shop price inflation remained steady in December. Households did have reason to celebrate as food inflation fell for the eighth consecutive month thanks to retailers’ efforts to bring down prices in the run-up to Christmas.

"Non-food products had a more challenging December, with price inflation rising again following retailers’ investment in November Black Friday discounting and ahead of the January sales.

“Retailers will continue to do all they can to keep prices down in 2024, but there are obstacles on the road ahead. New border checks for EU imports, hundreds of millions more on business rates bills from April. Government should think twice before imposing new costs on retail businesses that would not only hold back vital investment in local communities, but also push up prices for struggling households.”

Mike Watkins, head of retailer and business insight at NielsenIQ, adds: "NIQ research showed that low price, quality, and availability were the top factors for shoppers when planning where to do their main Christmas grocery shop this year, so the further fall in shop prices will have helped shoppers celebrate the festive season. But there was a lot of pressure on discretionary spend and price discounting was deeper and began earlier not just in the non-food channel but also in food retail, where promotions got back to a 4-year high at the end of the year.”

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