📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

UK shop price growth back to normal, retailers say

Published 05/28/2024, 01:54 AM
Updated 05/28/2024, 01:56 AM
© Reuters. FILE PHOTO: People walk past food stands and market stalls in a Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File photo

LONDON (Reuters) - Prices in British shops rose at the slowest pace in 2-1/2 years this month, according to the British Retail Consortium which said the rate of inflation in the sector was back to normal after its surge.

In a latest sign of easing inflation pressure that will be welcomed by the Bank of England, annual shop price inflation slowed to 0.6% in May from 0.8% in April, the smallest increase since November 2021, the BRC said.

Prices for non-food goods fell by 0.8% in annual terms after a 0.6% drop last month.

Food inflation slowed for a 13th month in a row to 3.2% from 3.4%, its lowest since February 2022.

"After a number of months of falling input prices, we are now seeing food inflation stabilise and retailers continue to pass on price cuts to shoppers," said Mike Watson, head of retailer and business insight at NielsenIQ, which provides data for the BRC.

© Reuters. FILE PHOTO: People walk past food stands and market stalls in a Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File photo

"Whilst inflationary pressure has eased and there is some improvement in shopper sentiment, the unseasonable weather has dampened retail sales so lower prices look set to continue and promotional activity is likely to increase (and) drive demand."

The BoE is considering when it should cut interest rates for the first time since 2020. It is focusing in particular on prices in Britain's service sector which are running at close to 6% in contrast to the sharper cooling of growth in goods prices.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.