Shop price inflation climbs in January
New figures have shown that shop price inflation accelerated to 1.5% in January from 0.8% in December as the furniture and flooring categories experienced particularly high demand from shoppers.
This marks the highest rate of inflation since December 2012.
According to the data from the British Retail Consortium and Nielsen, non-food inflation moved to 0.9% compared to a fall of 0.2% in the prior month. while food inflation accelerated to 2.7% in January, up from 2.4% in December.
Helen Dickinson, BRC chief executive, said: “January saw shop price inflation nearly double, driven by a sharp rise in non-food inflation. In particular, furniture and flooring saw exceptionally high demand leading to increased prices as the rising oil costs made shipping more expensive. Food prices continue to rise, especially domestic produce which have been impacted by poor harvests, labour shortages, and rising global food prices.”
However, the figures reveal that fresh food inflation slowed slightly in January to 2.9% from 3% in December.
The BRC highlighted how many households will find it difficult to absorb the additional costs resulting from wider UK inflation which has been pushed to the forefront of the political agenda.
Dickinson added: “Retailers are working hard to cut costs, but it would be impossible to protect consumers from any future rises. As commodity prices, energy prices and transportation costs continue to rise, it is inevitable that retail prices will continue to follow in the future.”
