UK Shop Prices Return To Deflation

UK shop prices declined in October following two months of mild inflation, data from the British Retail Consortium showed.

The BRC – Nielsen shop price index decreased 0.2 percent year-on-year versus a 0.2 percent rise in September.

Non-food deflation deepened to 1.1 percent in October from 0.9 percent a month ago. At the same time, food inflation slowed to 1.3 percent from 1.9 percent in both September and August.

“The inflationary cost pressures in the supply chains are being managed by the industry which tempered the recent upward pressure of shop price inflation in October,” Mike Watkins, head of retailer and business insight, Nielsen, said.

“Consumers remain uncertain about when and where to spend and with Christmas promotions now kicking in, competition for share of wallet will intensify in both food and non-food retailing,” Watkins added.