19 July 2024, 06:23
By Furniture News Mar 01, 2023

High costs burden retailers and consumers, says BRC-NielsenIQ

Shop price annual inflation accelerated to 8.4% in February, up from 8.0% in January, bringing shop price growth to a fresh high, says BRC-Nielsen IQ.

Non-food inflation accelerated to 5.3%, up from 5.1% in January.

Helen Dickinson OBE, chief executive of the British Retail Consortium (BRC), says: “Shop price inflation rose to another record high as retail prices across the board continued to react to the impact of soaring energy bills, higher running costs and tougher trading conditions brought about by the war in Ukraine. For non-food products, these factors particularly impacted gardening tools and pet food. Meanwhile, fresh food prices, especially vegetables, were also affected by a weaker pound, making produce imports from Europe more expensive. “

Mike Watkins, head of retailer and business insight, NielsenIQ, adds: “With more than half (56%) of UK consumers feeling they are in a worse financial position compared to a year ago and inflation still stubbornly high, many households are trimming back on non-essential spending. And as volume sales are down on last year, some retailers are having to work even harder to encourage customer spend, including additional price cuts or promotional activity. This likely to continue until consumer confidence starts to improve.”

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