Shop price inflation eased in February as retailers cut prices
Shop price inflation eased in February as consumers benefited from strong competition between retailers.
According to data from the British Retail Consortium and NeilsenIQ, shop prices increased 1.1% year-on-year in the month following growth of 1.5% in January.
Subscribe to TRBHelen Dickinson, chief executive of the BRC, said: “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.”
Non-food prices edged down 0.1% against growth of 0.3% in January while food inflation increased 3.5% after growth of 3.9% a month earlier.
Fresh food prices increased 4.3% after an uplift of 4.4% in January as falling global food costs fed through. Ambient food inflation rose 2.3% following the previous month’s growth of 3.1%.
Looking ahead, Dickinson said: “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, said: “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.”
