Shop prices up 0.4% in January
Shop prices edged up 0.4% in January despite many retailers offering discounts after Christmas.
The figures from the British Retail Consortium and Nielsen in their monthly shop price monitor show that non-food prices fell by 0.3% in the month but food prices increased by 1.5%. While fresh food prices rose by 1.2%, ambient food prices climbed by 1.9% in January.
Helen Dickinson, BRC chief executive, said: “Despite significant post-Christmas discounting, shop prices in January were slightly up on last year. Promotions have become the norm in recent years, but it was never going to be possible to continue making seasonal price cuts deeper each year; especially given that the cost of importing many of the goods we buy increased with the post-referendum fall in the pound.”
Despite the overall increase in prices, Dickinson said consumers had little to fear with regard to inflation in the coming months although she warned that the price of many grocery items could rise if the UK leaves the EU on 29 March without a deal.
