UK Store Prices Level With Last Year, BRC/Nielsen Data Shows
Store prices in the UK rose by just 0.1% in the month of November compared to the same month the previous year, according to the latest BRC-Nielsen Shop Price Index.
However, this was mainly driven by a 0.8% decrease in the price of non-food items, which fell by 0.8% year-on-year.
Food prices rose by 1.6% year-on-year, with fresh food prices rising by 1.2%. Ambient food prices were up 2.1%.
“As we approach the Christmas season, the good news for consumers is that prices have remained almost unchanged in November," said Helen Dickinson OBE, chief executive, British Retail Consortium. "Furthermore, falls in the price of clothes and electrical goods will be a welcome bonus as the public prepare to do their Christmas present shopping.
“However, the low inflation presents a more difficult picture for retailers who are facing weak consumer demand and uncertainty surrounding Brexit. If the Government wishes to rebuild business confidence, they must work fast to ensure we get a transition period that gives retailers and their suppliers time to adapt to business outside the EU.”
Shop Price Inflation
As Mike Watkins, head of retailer and business insight at Nielsen explains, while there has been a small increase in retail prices since the end of the summer, shop price inflation remains below CPI.
"Prices continue to fall in non-food as shoppers are still cautious about spending," he explained.
We have also seen deeper promotions ahead of Black Friday and the wider benefits from membership schemes also being messaged to shoppers. With the recent slowdown in sales growth across food retailing and the start of seasonal advertising, we can expect further price cuts as the battle for shopper loyalty this Christmas begins to heat up.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine