Shop price inflation reaches six year high in February
Shop price inflation reached a six year high in February after it accelerated to 0.7% from 0.4% in January.
Figures from the British Retail Consortium and Nielsen show that non-food prices increased by 0.2% year-on-year in February to mark the first time the category has seen inflation since March 2013.
Food inflation rose to 1.6% in the month from 1.5% in January. Fresh food inflation accelerated to 1.7% from 1.2% in the previous month. Meanwhile ambient food inflation was 1.5%, down from 1.9% in January.
The BRC said the uplift in non-food prices reflected ongoing cost pressures which have built up in the supply chain over the last two years, although non-food prices remain below those seen in 2016.
Helen Dickinson, BRC chief executive, said: “For the first time in almost six years the price of non-food goods rose, albeit slowly, as cost pressures which had been building in the supply chain over the past few years fed through into prices. This adds to gradual ongoing rises in food prices, resulting in the highest overall shop price inflation since March 2013.”
In addition, Dickinson warned that a no deal Brexit would have a more dramatic effect on prices. She added: “Parliament must protect British consumers by agreeing a solution that avoids a chaotic no deal Brexit.”
