UK shop price inflation ebbed to an almost two-year-low in February, numbers on Tuesday showed.
According to the latest British Retail Consortium-NielsenIQ shop price index, annual shop price inflation ebbed to 2.5% in February, from 2.9% in January. The reading was also short of the three-month average inflation rate of 3.3%.
‘Shop price annual growth is its lowest since March 2022,’ the BRC said.
The non-food inflation rate was unmoved at 1.3% in February, below the 3-month average rate of 2.0%.
Food price inflation eased to 5.0% in February, from 6.1% in January, below the three-month average rate of 6.0%. The BRC noted it is the 10th consecutive deceleration in food price inflation.
Fresh food inflation alone abated to 3.4% in February, from 4.9% in January. Ambient food inflation decelerated to 7.2% in February, from 7.7% in January.
British Retail Consortium Chief Executive Helen Dickinson commented: ‘There was good news for consumers as shop price inflation fell to its lowest rate in nearly two years. Food prices fell month-on-month with drops in fresh food including meat, fish and fruit. This was driven by easing input costs for energy and fertiliser while retailers competed fiercely to keep prices down. In non-food, inflation for furniture, electricals, and health & beauty products rose, but the price of clothing continued to fall as many retailers kept promotions in place to entice consumer spend.
‘Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise. Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope.’
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