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

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.