UK shop price inflation slows to 23-month low in February

26th Feb 2024 09:04

(Sharecast News) - Shop price inflation in the UK fell to its lowest level in 23 months in February, according to the British Retail Consortium-NielsenIQ Shop Price Index released on Tuesday.

The annual rate of price growth slowed to 2.5% this month, down from 2.9% in January, as easing supply-chain pressures fed through to food prices.

This was below the three-month average rate of 3.3% and the lowest level since March 2022.

Non-food inflation was unchanged at 1.3% compared with last year, while food inflation eased to 5.0% from 6.1% - marking the tenth straight monthly deceleration.

However, according to BRC chief executive Helen Dickinson, "significant uncertainties remain" as geopolitical tensions increase.

"Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope," said Dickinson.

Meanwhile, Dickinson highlighted that UK retailers are facing a big rise in business rates bills in April, which was "determined by last September's sky-high inflation rate".

"April's rates rise should be based on April's inflation, and the Chancellor should use the Spring Budget to make this correction, supporting business investment and helping to drive down prices for consumers," Dickinson said.