Shop price inflation increased 1.1% YoY in February, against growth of 1.5% in January, report BRC-NIQ. Non-food prices fell 0.1% YoY, against growth of 0.3% in January.
Helen Dickinson, chief wxecutive of the BRC, says: “Households got some welcome relief in February as shop price inflation eased. Fierce competition between retailers kept price rises in check, with promotions across health, beauty and fashion. Falling global food costs also fed through, pushing food inflation down, with ambient food inflation dropping to its lowest level in four years.
“While the direction of travel is promising, prices are still rising, and many consumers remain under pressure. Retail operates on thin margins yet has faced relentless tax rises in recent years. The Employment Rights Act could add further complexity if secondary legislation is implemented without an eye firmly on the potential consequences for the cost of doing business and hence the cost of living. Poor implementation decisions by Government would stymie job creation and push inflation back up.”
Mike Watkins, head of retailer and business insight, NIQ, adds: “Since the start of the year, we have seen some competitive pricing across both the food and non-food channels which is helping to bring down inflation. Whilst the inclement weather and weak sentiment is making consumer demand rather unpredictable for retailers, at least shoppers are now seeing some of their cost of living pressures start to ease.”
