Food inflation falls to three year low- BRC
Overall shop price inflation slowed in March to 1.2% from 1.7% in February.
Food inflation slowed marginally to 1.2% in March from 1.3% in February. Non-food inflation slowed to 1.3% in March from 1.9% in February.
Stephen Robertson, British Retail Consortium Director General, comments: “This is great news. Food inflation has fallen to its lowest for over three years and overall shop price inflation is the lowest since November. Non-food inflation fell for the first time since VAT returned to 17.5 per cent. “The competitive battle is even fiercer than usual as retailers fight it out to overcome the reluctance of customers to spend caused by pre-election uncertainty. Falling shop price inflation is particularly welcome relief for consumers as they face sharp rises in other living costs, such as fuel.”
Mike Watkins, Senior Manager, Retailer Services, Nielsen adds: “Downward pressures on pricing continue to impact all channels caused this month by a slowdown in ambient food prices as well as non-food prices. Retailers have needed to drive footfall with increased promotional activity pre-Easter and also to compensate for the increase in VAT. Overall the consumer remains cautious about spending.”
