British Retailers Say Prices Hit by Lower Food Costs

High street price cuts deepened last month as fresh food costs dropped at the fastest pace for at least eight years, according to industry figures that will reinforce expectations the UK is headed for a brief period of deflation.

The British Retail Consortium reported deflation in overall shop prices for the 22nd consecutive month, as prices in February fell 1.7% on a year ago. That followed deflation of 1.3% in January.

Non-food products again drove the overall drop, helped by clothes discounts and special offers on furniture and DIY items, the BRC said. Non-food items were down 2.5% on the year, the biggest drop for eight months.

Food prices also fell in February, signalling a change of trend after they had risen throughout much of last year. In February, they were down 0.4% against a backdrop of falling commodity prices, such as sugar and corn, and as a price war between supermarkets continues.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza