UK Shop Price Inflation Slows to 1.4 Percent in September
The British Retail Consortium reports shop price inflation fell to 1.4 percent as retailers increased promotions to stimulate consumer demand.
Shop price inflation in the United Kingdom slowed to 1.4 percent in September, down from 1.5 percent in August. Data from the British Retail Consortium and NIQ show that food inflation decreased to 2.5 percent from 2.8 percent, while non-food inflation dropped to 0.8 percent, driven largely by back-to-school discounts on electricals and stationery.
Retailers increased promotions and price cuts to drive demand, which helped lower meat and dairy prices. However, high global commodity costs and poor European harvests kept prices for confectionery and fruit elevated.
Despite the current dip, the British Retail Consortium warned that businesses have reached a limit in the costs they can absorb. The organization cited rising energy bills, packaging taxes, and upcoming business rate increases in April as factors that could force retailers to pass additional costs to consumers. Helen Dickinson, chief executive of the consortium, urged the Chancellor to freeze rates rises and remove shops from the business rates surtax to prevent future price hikes.
