UK data – BRC Shop Price Index: -1.4% y/y (expected -0.8%, prior was -1.7%)

The British Retail Consortium (BRC) Shop Price Index measures price changes in BRC-member retail outlets in the U.K.

From the report:

• Overall shop prices reported deflation for the twelfth consecutive month in April, decelerating to 1.4% from 1.7% in March.
• The deceleration in the overall SPI figure has broken the four month declining trend.
• Food inflation slowed to 0.7% from 0.8% in March – the lowest ever recorded.
• Non-food reported annual decelerated deflation of 2.7% in April from 3.2% in March.

Mike Watkins, Head of Retailer and Business Insight, Nielsen:

• “Over the last 6 months we have seen shop prices falling and in recent weeks stabilising, whilst Consumer confidence is slowly improving, shoppers remain cautious. So retailers are holding back on price increases wherever possible. With the escalation of price cutting by the major Supermarkets impacting shopping baskets over the next few weeks, we can anticipate any external pressures on food inflation to be held in check for the time being.”