Essential reading for retailers and suppliers in the home improvement market

Shop price inflation slows in March

Published: 7 April 2010
Non-food inflation drops 0.6% – the first time since the VAT reversal – as retailers drive footfall with promotional activity over the Easter period.
Shop price inflation slows in March
Overall shop price inflation slowed in March to 1.2% from 1.7% in February. Non-food inflation slowed to 1.3% in March from the 1.9% reported in February, while food inflation slowed to 1.2% - down marginally from 1.3% in February.

British Retail Consortium director general Stephen Robertson said: "This is great news. Food inflation has fallen to its lowest for over three years and overall shop price inflation is the lowest since November. Non-food inflation fell for the first time since VAT returned to 17.5%.

"The competitive battle is even fiercer than usual as retailers fight it out to overcome the reluctance of customers to spend caused by pre-election uncertainty. Falling shop price inflation is particularly welcome relief for consumers as they face sharp rises in other living costs, such as fuel."

Asda's Income Tracker revealed yesterday that Brits' discretionary income took a hit again in February, with the average UK family £6 a week worse off than in the same period last year. The cost of transport put a lot of pressure on households, with petrol prices up 23.3% and diesel up 12.9% in February 2010, compared with a year ago.

Nielsen senior manager, retailer services Mike Watkins said: "Downward pressures on pricing continue to impact all channels caused this month by a slowdown in ambient food prices as well as non-food prices. Retailers have needed to drive footfall with increased promotional activity pre-Easter and also to compensate for the increase in VAT. Overall the consumer remains cautious about spending."

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?


With footfall forecasts down and a number of retailers boycotting the day of deals, has the novelty of Black Friday worn off?



Latest reader comments

re: Retailers urged to be wary of counterfeit goods on Black Friday

Dino NicK
The only reliable way to STOP the fakes market is by serializing the original goods and offer the possibility to end consumers to check the ...

re: Pest-Stop helps blitz bed bugs

Pest-Stop
Hi Ely,The active ingredient is permethrin and is a fumite type product in which the fuse is lit for the product to work in the target area....

re: Pest-Stop helps blitz bed bugs

Ely
What is the active ingredient in the fumer? Is it a water-based or do I need to ignite it? thanks...

re: Which? says B&Q website is bottom of the pile

Roger
I agree that b&q have got it badly wrong on their new website.whoever programmed it should be sacked. For a start, the menu button does not ...

re: Ideabright Ltd bought back in pre-pack deal

Danny
When are we ever going to learn that these types of businesses, are nothing more than what the authorities would under any other ...

Most read stories