UK shop price inflation slows to 1.1% in February as retailers cut prices

"New data from the British Retail Consortium (BRC) and NielsenIQ showed shop prices rose 1.1 per cent year-on-year in February, down from 1.5 per cent in January. The deceleration reflects intensified competition across both food and non-food sectors, with retailers cutting prices to stimulate demand amid weak consumer confidence."

"Food prices remain elevated but are increasing at a slower pace. Annual food inflation eased to 3.5 per cent in February from 3.9 per cent the previous month. Fresh food inflation edged lower, while ambient food inflation, covering products such as coffee, pasta, canned goods and other cupboard staples, fell to 2.3 per cent, its lowest level in four years."

"Prices for non-food items, including clothing, electronics and household goods, declined by 0.1 per cent year-on-year, compared with 0.3 per cent growth in January. Heavy promotional activity in fashion and personal care, coupled with softer demand due to unseasonal weather and fragile sentiment, contributed to the decline."

Shop price inflation in the UK decelerated significantly in February, with annual growth falling to 1.1% from 1.5% in January. This slowdown reflects intensified retail competition and strategic discounting across food and non-food sectors. Food inflation eased to 3.5% from 3.9%, with ambient food inflation reaching its lowest level in four years at 2.3%. Non-food prices declined 0.1% year-on-year as heavy promotional activity in fashion and personal care, combined with weak consumer confidence and unseasonal weather, reduced demand. Lower global commodity costs are filtering through supply chains, stabilizing grocery prices. While the deceleration offers tentative relief from cost-of-living pressures, the BRC cautioned that underlying inflationary pressures persist.

Read at Business Matters