The annual charge of store worth inflation has eased to its lowest degree for nearly two years, in line with an business studying that credit meals and vogue costs.
The British Retail Consortium (BRC)-Nielsen Shop Price Index confirmed the tempo of worth will increase slowed to 2.5% over the 12 months to February from 2.9% the earlier month.
It was the bottom studying since March 2022, the BRC mentioned.
Money newest: How to get a pay rise
It was pushed by a major contribution from meals, with costs 5% up on a yr in the past in contrast with the 6.1% determine registered on the finish of January.
The report pointed to cost drops for meat, fish and fruit serving to contemporary meals inflation down to three.4% from an annual charge of 4.9% simply 4 weeks in the past.
The BRC credited easing enter prices for power and fertiliser and “fierce” competitors for cash-strapped consumers amongst retailers.
A separate report by Kantar Worldpanel, which logs grocery store worth and gross sales knowledge, additionally pointed to an easing in grocery worth inflation but it surely believed meals consumers can be spared a giant acceleration in costs forward.
Its strategic perception director, Tom Steel, mentioned: “Though there’s been numerous dialogue concerning the impression the Red Sea transport disaster may need on the price of items, supermarkets have been pulling out all of the stops to maintain costs down and assist individuals handle their budgets.
“This month, Morrison’s became the latest retailer to launch a price match scheme with Aldi and Lidl, after Asda made the move in January.
“More typically, we noticed promotions speed up this month after a post-Christmas slowdown. Consumers’ spending on provides elevated by 4% in February, price £586m greater than the identical month in 2023.”
The BRC identified rising prices for issues like furnishings and electrical items however prolonged provides on vogue, to entice spending by prospects, throughout February.
It noticed dangers forward to slowing worth progress from a sequence of points together with disruption to transport within the Red Sea to minimal wage and enterprise charges hikes deliberate for April.
Read extra from Sky News:
Warning UK will miss out on financial progress with out inexperienced plan
Supermarket to chop child components worth after Sky News investigation
Helen Dickinson, the BRC’s chief government, mentioned: “Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise.
“Prices of non-food items can be extra prone to transport prices, which have risen as a result of re-routing of imports across the Cape of Good Hope.
“Domestically, retailers face a major rise to their business rates bills in April, determined by last September’s sky-high inflation rate.
“April’s charges rise ought to be primarily based on April’s inflation, and the chancellor ought to use the… finances to make this correction, supporting enterprise funding and serving to to drive down costs for shoppers.”
Source: information.sky.com”