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UK inflation flat in October
Archived article dated Wednesday November 4th 2009
The BRC-Nielsen Shop Price Index reported a zero rate of inflation in October, largely unchanged from last month's 0.1% rate of deflation.
Food inflation remained at 2.5% for the second consecutive month, while the non-food category reported a slight fall in deflation from 1.4% to 1.3%.On a month-on-month basis overall shop prices were broadly flat in October.
The BRC's Director General, Stephen Robertson, said:“This is a great time to be a customer.Overall shop prices are no more than they were a year ago. Food inflation has tumbled by three-quarters since its peak last August and is expected to remain low for the rest of the year.The price of non-food goods has been deflationary for eleven months in a row – with the biggest falls in clothing, footwear and electricals. Christmas is lining up to be a punch-up between retailers as they battle it out for market share. Customers can reap the benefits from all the promotions and discounts.”
Mike Watkins, Senior Manager, Retailer Services, Nielsen added: “The latest data seems to shows that shop prices have now stabilised which will help shoppers as they plan their budgets in the run up to Christmas. “Fresh food inflation now seems to have bottomed out while ambient foods have slowed again to 4.3%. However, we don’t anticipate seeing price deflation in the grocery market like we have seen in the non-food channel. Non-food has remained deflationary for 11 successive months which has largely been the result of the VAT reduction and consistently weak demand.”
Tagged as: brc | shop prices
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