Retail

UK Shop Price Growth Back To Normal, According To Retailers

By Reuters
UK Shop Price Growth Back To Normal, According To Retailers

UK Grocery Inflation Falls Below 3% – KantarPrices in UK shops rose at their slowest pace in two and a half years this month according to the British Retail Consortium (BRC).

The organisation said the rate of inflation in the sector was back to normal after its surge last year.

This latest sign of easing inflation pressure will be welcomed by the Bank of England.

Annual shop price inflation slowed to 0.6% in May from 0.8% in April, signifying its smallest increase since November 2021, the BRC said.

Prices for non-food goods fell by 0.8% in annual terms, following a 0.6% drop last month.

ADVERTISEMENT

Food inflation slowed for a 13th consecutive month to 3.2% from 3.4%, its lowest point since February 2022.

Mike Watson, the head of retailer and business insight at NielsenIQ said, “After a number of months of falling input process, we are now seeing food inflation stabilise and retailers continue to pass on price cuts to shoppers.

“Whilst inflationary pressure has eased and there is some improvement in shopper sentiment, the unseasonable weather has dampened retail sales so lower prices look set to continue and promotional activity is likely to increase (and) drive demand.”

The Bank of England is considering when it should cut interest rates for the first time since 2020.

It is focusing in particular on prices within the UK’s service sector which are running at close to 6% in contrast to the sharper cooling of growth in goods prices.

Read More: UK Grocery Inflation Falls Below 3% – Kantar

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.