Shop prices down 1% in February
Shop prices dropped by 1% in February despite continuing underlying cost pressures for retailers.
The figures from the British Retail Consortium and Nielsen in their monthly shop price index reveal that food prices edged up by just 0.4% even though retailers faced increased costs.
Helen Dickinson, BRC chief executive, said: “It is clear that the significant underlying cost pressures, which have been building over the last year are beginning to filter through into shop prices. Food prices were on average 16% higher at the beginning of this year compared to last, whilst over the same period the value of the pound fell around 15%. Despite this, February saw an increase of just 0.4% in the prices of food sold in shops.”
Meanwhile, non-food prices fell by 1.8% in the month.
Mike Watkins, head of retailer and business insight at Nielsen, added: “Non-food prices remain deflationary and in part this reflects the structural change underway in non-food retailing. At the moment consumer sentiment around spending intentions is strong so we don’t anticipate any significant change on retail spend over the next few months even if shop price inflation gains more momentum.”
