BRC figures: shop price deflation may be coming to an end
Figures from the British Retail Consortium and Nielsen in their monthly shop price index show that shop prices fell by 0.1% for a third consecutive month in November.
The decrease has led the BRC to warn that over four years of shop price deflation might now be coming to an end.
Non-food price deflation eased in November to 1.1% from 1.5% in October while food inflation slowed to 1.5% in November from 2.2% in October.
The BRC’s figures also reveal that fresh food inflation decelerated sharply to 1.3% in November from 2.2% in October.
Helen Dickinson, BRC chief executive, said: “For the third consecutive month shop price inflation remained static, still teetering on the edge of a return to inflationary territory. November now marks the 55th consecutive month of deflation with the current rate the shallowest in the last four years.
“Meanwhile the forces driving inflation continue to play out differently across the industry. While food inflation has fallen back in line with global prices, non- food deflation is as low as its been for more than three years, as hedging contracts come to an end and with them, retailers’ ability to shield their customers from the currency depreciation.”
