Shop price inflation was unchanged at -0.7% year on year in February, against a decline of -0.7% in January, report BRC-NIQ in their latest Shop Price Index report.
Non-food inflation decreased to -2.1% YoY, against a decline of -1.8% in January.
Helen Dickinson, chief executive of the BRC, says: “While shop prices remained in deflation in February, prices on the month saw the biggest increase in the last year.
"In non-food, MoM prices rose as January sales promotions ended, especially in electricals and furniture. But discounting is still widespread in fashion as retailers tried to entice customers against a backdrop of weak demand.
“Inflation will likely rise across the board as the year progresses with geopolitical tensions running high and the imminent £7b increase in costs from the Autumn Budget and the new poorly designed packaging levy arriving on the doorsteps of retailers."
Mike Watkins, head of retailer and business insight, NielsenIQ, adds: “With many household bills increasing over the next few weeks, shoppers will be looking carefully at their discretionary spend and this may help keep prices lower at non-food retailers. However the increase in food inflation is likely to encourage even more shoppers to seek out the savings available from supermarket loyalty schemes.”
