Price Volatility Over For Now

The BRC-Nielsen Shop Price Index for June 2010 says shop price inflation fell to 1.5% in June 2010 from 1.8% in May. Food price inflation was 1.7% from 2.2% and non-food price inflation 1.4% from 1.6%. The Director General of the BRC said shop price volatility looks to be over for now and low stable inflation is likely for the rest of the year.

Shop Prices Up 2% In April

Shop price inflation went up to 2% in April 2010 from 1.2% in March according to the British Retail Consortium's Shop Price Index. Both food inflation and non-food inflation went up 2%. A BRC spokesperson said that even though the index is up some produce is cheaper than it was last year. It should also be remembered that last month's index was a three year low.

Food Inflation Hits A New Low

Great news for shoopers from the British Retail Consortium's Shop Price Index tells us that inflation has fallen to 1.7% from 2.3% in January and food prices have hit a new low. Food inflation has plummeted from 2.9% to 1.3% the lowest for three years. Non-food inflation was unchanged at 1.9%. As reported on previous occasions the effects of VAT and shopper restraint may still be having an effect but the Director General of the BRC said that food prices should remain stable.

Prices Up On The High Street In December

Shop prices increased in December by 2.2%. Food inflation increased from 2.8% in November to 3.7% in December and non-food inflation was up 1.4% in December from -1.2% in November 2009.

December was the only month with the same 15% VAT rate as the previous year making an inflationary figure inevitable according to the BRC. The period covered by the survey was the 7-12 December 2009.

Food Inflation Decreases Food Sales

The value of retail sales increased by 2.8% like-for-like from September 2008 partly due to the Bank Holidays falling in the September period this year according to the British Retail Consortium (BRC) Retail Sales Monitor for September. There was a further slow down in food sales due to food inflation. Other sectors that increased were clothing and footwear and homewares and furniture sales due to an increase in consumer confidence and the housing market. Internet sales of non-food goods helped achieve a figure of 11% higher than a year ago in September and 7.9% compared with August.

The BRC Shop Price Index stayed deflationary for the second consecutive month. Shop prices fell 0.1% in September year-on-year. Food inflation increased to 2.5% from 2.3% in August. On the monthly basis the index remained flat.

Fresh Foods Help Keep Price Inflation Down

The British Retail Consortium (BRC) Shop Price Index (SPI) produced in collaboration with Nielsen reported annual inflation of 0.7% in June. It is down from 1.3% in May. The slowdown has continued since March. Food was the main driver with annual inflation of 5.6% from 6.4% in May. Fresh foods and particularly dairy products and some meats were largely responsible. Consumers will be seeing savings on their supermarket bills. Non-foods were up from 1.3% to 1.9%.

The month-on-month basis reported a prices increase of 0.2% in June compared with 0.5% in May. The increase in unemployment is affecting consumer confidence. Discounts and promotions are being offered at the expense of margins. Shopping conditions such as good weather help shoppers take advantage of promotional offers. The BRC maintain that the SPI is a more reliable indicator of shop price inflation than the RPI produced by the ONS.

Shop Price Index Down

The British Retail Consortium's Shop Price Index year-on-year index fell from 2.0% in March to 1.4% in April. It is the first time it has fallen since December 2008 when there was a cut in VAT. The month-to-month index fell by 0.5%. Non-food goods are cheaper than a month ago because of discounting. Food is also cheaper this month signalling a possible end to the worst of food price inflation. Retailers’ attempts to keep shopping bills down are being prevented by rising farm gate prices for meat and vegetables.