British Retail Consortium reports shop prices showing first signs of upward trend

by | Jan 4, 2017 | News | 0 comments

prices
  • Overall shop prices reported deflation of 1.4% in December, a deceleration from the 1.7% fall in the previous two months.
  • Non-food deflation decelerated to 1.9%, down from 2.3% in the previous month. This is the weakest deflation rate since June 2015.
  • Food deflation decelerated marginally to 0.7% in December from the 0.8% fall in November. This compares with a 0.9% fall on a 3-month basis.
  • Fresh Food deflation remained at 1.2% for the second consecutive month. This compares with the 3-month average of -1.5%.
  • Ambient Food moved into inflationary territory for the first time since June 2016, up 0.1% in December from the 0.1% decline in the previous month.

Helen Dickinson OBE, chief executive of the?British Retail Consortium said: ?December saw an easing of shop price deflation. Prices were down 1.4% compared to last year, but the majority of the categories we monitor, particularly non-food, saw month-on-month increases in prices, with clothing and footwear seeing month-on-month inflation for the first time in nearly two years.

?We?ve said for some time that we expect to see underlying inflationary pressures, notably from the post-referendum fall in the value of the pound, feed through into shop prices. It?s too early to confirm that this is what we?re seeing in December?s figures: timings of seasonal discounts can cause monthly fluctuations at this time of year and retailers have continued to find ways to mitigate the impact on consumers.

?However, we expect the general trend in inflation to be upwards over 2017. The magnitude of the exchange rate movement and commodity price rises combined with the increasing costs of doing business means that retailers will have little choice other than to pass on some of these rising costs into prices but effect will be lessened by the intensity of competition.?

Mike Watkins, head of retailer and business insight at Nielsen said: ?Consumer demand has been increasingly difficult to predict in recent weeks and retailers continued to hold back on price increases in December to ensure a strong end to the year. However, whilst the supermarket price war helped food prices to fall in the run up to Christmas, we are now seeing the first impact of the currency depreciation of the last six months, with increases in retail prices for some non-foods such as clothing. Over the next six months we can expect the return of shop price inflation but as the battle for the wallet of the shopper is so intense, this will be phased in by retailers and any increases are likely to be less than other sectors of consumer spend as measured by the consumer price index.?

more latest news ➡

GCA BoT results show garden projects on the up

January’s GCA BoT results reveal rise in garden projects

Hard landscaping topped the sales table in the Garden Centre Association’s (GCA) Barometer of Trade (BoT) report for January 2024 with hardy plants, seeds and bulbs also doing well. Figures recorded by GCA member garden centres last month show a good start to the...

Rising stars nominations deadline 1 March

March 1 deadline for Rising Stars nominations

The GCA is urging members to get their 2024 Rising Stars nominations in by March 1 to help showcase and develop the industry’s most talented individuals this year. The Westland Horticulture sponsored programme offers those who participate the chance to be mentored...

Handy drops new catalogue for 2024 season

Handy unveils the latest gardening and DIY products

British garden manufacturer Handy has announced the arrival of its new catalogue and Monthly Dealer Promotions Calendar, both designed to provide retailers with valuable increased margins on a wide range of gardening and DIY products and ensure they have everything...

HTA shows caution for garden retailers

Garden Centres cautious despite good start to year

The Horticultural Trades Association (HTA) releases its February monthly market update, which shows that despite the UK economy's recently announced recession, garden retail continues to show some green shoots to kick off the year. The resilience is a continuity of...

Mike Burks awarded GCA Honorary member

GCA inducts Mike Burks as honorary member

Mike Burks, managing director of The Gardens Group, which owns Castle Gardens in Sherborne, Brimsmore Gardens in Yeovil and Poundbury Gardens near Dorchester, has been awarded Honorary Membership of the Garden Centre Association (GCA). Presented by GCA...

Greenfingers

The GCA Conference digs deep for the Greenfingers Charity

The recent Garden Centre Association (GCA) conference was not only an informative and educational event, but it also featured a lot of fundraising for the garden retail sector’s adopted charities, including Greenfingers. In fact, delegates dug so deep into their...

Read GCR's latest edition!
Read GCR's latest Made in Britain Supplement!

Subscribe ToThe Wednesday Word

Subscribe To
The Wednesday Word

 

Get all the latest news, events & more straight to your inbox every Wednesday.

You have Successfully Subscribed!

Pin It on Pinterest

Share This