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UK shop price inflation strikes new record high: BRC
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LONDON (Reuters) – British shop price inflation picked up this month to reach its highest rate since industry records began in 2005, although growth in food prices cooled slightly, a survey showed on Tuesday.
LONDON (Reuters) – British shop price inflation picked up this month to reach its highest rate since industry records began in 2005, although growth in food prices cooled slightly, a survey showed on Tuesday.
The British Retail Consortium said prices in supermarkets and retail chains rose 9.0% in the year to May, after an 8.8% increase in April.
Food price inflation as measured by the BRC slowed, however, to 15.4% from 15.7%.
“While overall shop price inflation rose slightly in May, households will welcome food inflation beginning to fall,” said BRC chief executive Helen Dickinson. “The slow in (food) inflation was largely driven by lower energy and commodity costs starting to filter through to lower prices of some staples including butter, milk, fruit and fish,” she added.
The figures follow official data last week that showed annual consumer price inflation – which includes services and non-shop goods like energy – slowed in April, but by less than expected, to 8.7% from 10.1%.
Official food price inflation, which earlier this year rose to its highest rate since 1977, slowed only marginally to 19.1% from 19.2%.
“While there is reason to believe that food inflation might be peaking, it is vital that government does not hamper this early progress by piling more costs onto retailers and forcing up the cost of goods even further,” Dickinson said.
“The biggest risk comes from policies such as the incoming border checks and reforms to packaging recycling fees.”
The BRC data was based on prices collected between May 1 and May 7.
(Reporting by Andy Bruce; editing by David Milliken)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or the Retail Price Index (RPI).
Food price inflation is the rate at which the prices of food items increase over time. It is an important measure as it directly affects household budgets and overall economic stability.
Commodity costs refer to the prices of raw materials used in the production of goods, such as oil, metals, and agricultural products. Fluctuations in these costs can significantly impact retail prices.
The British Retail Consortium (BRC) is a trade association representing the retail industry in the UK. It provides insights, data, and advocacy on behalf of its members regarding retail issues.
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