–Pace Of Annual Food Price Inflation Highest Since June 2009
–UK BRC Apr Shop Prices Up 2.5% y/y vs up 2.4% y/y Mar
–UK BRC Apr Food Inflation 4.7% y/y vs up 4.0% in Mar
–UK BRC Apr Shop Prices Up 0.3% m/m vs down 0.3% m/m in Mar
–BRC: Food Inflation Likely Overstated In April Due Easter Timing

LONDON (MNI) – Shop price inflation accelerated marginally in
April, boosted by the fastest pace of food price inflation since June
2009.

The British Retail Consortium-Nielsen Shop Price Index was up 2.5%
on the year, up from 2.4% in March. The SPI rose 0.3% on the month,
reversing the 0.3% monthly fall in March.

Food price inflation spiked to 4.7% in April, up from 4.0% in
March. Food prices rose 1.2% on the month, having fallen 0.5% in March.

The BRC said that April food price inflation is likely to have been
overstated due to the timing of Easter promotions relative to last year.
Perishable food stock, often subject to heavy discounting following
Easter weekend, would have been included in last year’s SPI but not in
this year’s.

Non-food inflation slowed to 1.2% in April from 1.5% in March, the
BRC said. Non-food prices were down 0.1% on the month in April having
fallen 0.2% in March.

Stephen Robertson, British Retail Consortium Director General, said:

“Overall shop price inflation edged up slightly because rising food
inflation outweighed slowing non-food inflation. Clothing, footwear and
electricals prices were actually down on a year ago, and those prices
fell faster than the previous month. In the face of falling consumer
confidence, retailers’ efforts to generate sales with Easter discounts
were key to holding back prices on non-food goods.”

Robertson added that upward pressures on food prices kicked back in
April, with the cost of world commodities, including sugar and wheat,
rising even more quickly in April and “inevitably working through to
some shop prices.”

“The consolation for customers is that there is a mass of offers to
be had and the fact that forty per cent of the groceries being bought
are on promotion shows that customers are taking up those offers in a
big way,” he added.

The BRC SPI data was scheduled for release at 2301 GMT but was
published by a website, DIYWEEK.net, and was circulated among market
participants.

–London newsroom: 4420 7862 7491; email: dthomas@marketnews.com

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