Published on May 2nd, 2019 | by The GC Team0
Non-food prices fall back into deflationary territory
A substantial increase in discounting during April resulted shop price inflation decelerating to 0.4% from 0.9% in March, above the 12-month average inflation of 0.1%.
Non-food fell back into deflationary territory as prices decreased by 0.6%, while food inflation decelerated to 2.2%, down from 2.5% in March.
According to the British Retail Consortium, April saw a significant pickup in promotional activity. The number of both food and non-food discounted product lines more than doubled compared to both last year and the previous month.
“For a while now we have observed a shift in promotional behaviour whereby retailers are trading depth for breadth, with more lines on promotion but shallower price cuts,” commented BRC Chief Executive Helen Dickinson, adding that the discounting is testimony to shoppers’ reluctance to spend and to the intense competition within the industry.
Mike Watkins, Head of Retailer and Business Insight at Nielsen, said: “The slowdown in shop price inflation this month is welcome news for shoppers who are now facing rising households bills across energy, travel and entertainment.
“However, many households are still cautious about spending, so we anticipate promotions continuing over the summer months to help the momentum in retail sales which was kickstarted by the late Easter and some warm weather.”