Published on October 4th, 2017 | by The GC Team0
Shop prices near inflationary threshold
Shop price deflation reached an all-time low in September with prices now teetering on the edge of inflation.
Overall prices reached a deflation level of 0.1%, the shallowest in the last four years.
Food price inflation rose to 2.2%, while deflation in non-food prices accelerated to 1.5%, from 1.3% in August.
Helen Dickinson, Chief Executive of the British Retail Consortium, said retailers’ efforts to shield shoppers from the impact of higher import prices for basic non-food items are holding out for now.
“However,” she added, “as more non-food retailers’ hedging facilities come to an end this autumn, and as public policy costs mushroom, consumers are likely to start feeling an additional pinch on these products.
“This more challenging outlook for consumers going forward is made more ominous by the recent uptick in producer price inflation – the first since February – which is adding [to] further inflationary pressures on the horizon.”
“The good news,” added Mike Watkins, Head of Retailer and Business Insight at Nielsen, “is that inflation is expected to peak over the next few months, and with consumers still uncertain about when and where to spend, we expect competition for discretionary spend to intensify as we head towards the end of the year, with more promotional savings for shoppers across all channels.”