UK shop prices reported deflation for 12th straight month in April, decelerating to 1.4% from 1.7% in March, as food inflation slowed to 0.7% from 0.8% in March, non-food reported annual decelerated deflation 2.7% from 3.2% in March: BRC
May 9, 2014
– Overall shop prices reported deflation for the twelfth consecutive month in April, decelerating to 1.4% from 1.7% in March. The deceleration in the overall SPI figure has broken the four month declining trend. Food inflation slowed to 0.7% from 0.8% in March – the lowest ever recorded. Non-food reported annual decelerated deflation of 2.7% in April from 3.2% in March.
Helen Dickinson, British Retail Consortium Director General, said "Hard-pressed families mindful of budgets in the run up to Easter break have been helped by the lowest level of food inflation since BRC records began in December 2006. Customers benefitted from prices and promotions in their local supermarket as they stocked up for the Easter holidays.
"Retailers will continue to respond to cost conscious consumers by keeping prices down. We've also seen some excellent deals in clothing and footwear, electrical, furniture and flooring.
"After a rise at the beginning of the year a more positive outlook for commodity prices should mean prices remain stable in the coming months.
"'With food retailers continuing to keep prices down and stable commodity prices ahead, customers will benefit for the foreseeable future."
Mike Watkins, Head of Retailer and Business Insight, Nielsen, said "Over the last 6 months we have seen shop prices falling and in recent weeks stabilising, whilst Consumer confidence is slowly improving, shoppers remain cautious. So retailers are holding back on price increases wherever possible. With the escalation of price cutting by the major Supermarkets impacting shopping baskets over the next few weeks, we can anticipate any external pressures on food inflation to be held in check for the time being." - See more at: http://www.brc.org.uk/brc_news_detail.asp?id=2624#sthash.6xKPbfPe.dpuf