UK shop prices fall at lowest level since May 2018

  • BRC-Nielsen Shop Price Index found that shop prices have declined in September as non-food prices decreased
  • Grocery inflation fell to its lowest rate since April 2018
  • Overall shop prices declined 0.6% in September, compared to a 0.4% decline in August

By guest author Sahar Nazir from Retail Gazette

New research has shown that shop prices have declined in September as non-food prices decreased and grocery inflation fell to its lowest rate since April 2018.

Overall shop prices declined 0.6 % in September, compared to a 0.4 % decline in August, according to the BRC-Nielsen Shop Price Index.

Non-food prices fell by 1.7 % during the month, in comparison with a 1.5 % fall in August, marking the highest rate of decline since May 2018.

Meanwhile, food inflation eased to 1.1 % in September compared with 1.6 % fall in August, driven by fresh food inflation halving month-on-month to 0.7 % in September.

Ambient food inflation fell 1.7 % in September, compared with 1.8 % in August.

“Shop prices fell by 0.6 % on the previous year as low consumer demand and stiff competition continued to push down prices,” BRC chief executive Helen Dickinson said.

“Non-food prices fell to their lowest since May 2018 as the effects of the 2016 currency depreciation finished filtering through the economy.

“Food price inflation eased to a 17-month low reflecting both lower domestic prices for vegetables and lower global prices for meat.

“While consumers may welcome lower prices, falling consumer demand is squeezing retailers’ already tight margins. With business costs continuing to rise – including business rates, wage bills, and pension costs – the high street risks more big name closures. Reform of business rates remains the most effective way government can support the retail industry – and they should grasp the opportunity with both hands,” she said.

www.nielson.com

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