BRC-Nielsen Shop Price Index July 2019: UK food price inflation “eased slightly”
Food inflation is expected to remain steady over the next few months as retailers work hard to keep prices low
31 Jul 2019 --- Food inflation eased slightly to 1.7 percent in July from 1.8 percent in June, according to the British Retail Consortium (BRC)-Nielsen Shop Price Index for July 2019. Fresh Food inflation also slowed in July to 1.2 percent from 1.4 percent in June. Within the Fresh Food category, there was a mix of inflationary pressures and meat was the only deflationary element of the category, with prices falling for a third consecutive month, as global price developments feed through into final consumer prices.
July Shop Price deflation was steady at -0.1 percent. July was the second consecutive month of deflation since October 2018. This is below the 12- and six-month average price increases of 0.3 percent and 0.4 percent, respectively.
Ambient Food inflation accelerated to 2.4 percent in July up from 2.3 percent in June. Non-Food prices fell by 1.2 percent, the same rate of decrease as in June.
Similar to last month, July’s headline inflation figure was driven by the sharp decline in Non-Food prices. Out of the seven Non-Food index categories, inflation eased for three of them and the other three were deflationary.
“Shop prices fell by 0.1 percent for the second month in a row. Many consumers will be pleased to see the price of non-food products continuing to fall at a steady rate, underlining the stiff competition between retailers that is driving down prices. Furthermore, food price inflation eased slightly, in part due to the fall in global food prices,” says Helen Dickinson OBE, Chief Executive, British Retail Consortium (BRC).
“While we expect food inflation to remain steady over the next few months as retailers work hard to keep prices low, this will depend on whether the UK can navigate an agreement with the EU to ensure frictionless tariff-free trade continues after October 31.”
Edited by Gaynor Selby
