This indicator has been sowing persistent shop price deflation
British Retail Consortium data for August:
- -0.3% y/y, prior -0.4%
Prices for non-food goods declined at the slowest rate since April 2013
- "The reality is that with protection from hedging policies coming to an end, non-food retailers are running out of options for protecting shoppers from the significant increases in the price of imported goods since the EU referendum in June last year," BRC chief executive Helen Dickinson.
- "We expect non-food prices to continue trending towards year on year inflation."
--
Separately, BRC warning on delays in getting fresh food into the country:
- "Whilst the government has acknowledged the need to avoid a cliff-edge after Brexit day, a customs union in itself won't solve the problem of delays at ports," said BRC chief executive Helen Dickinson. "So to ensure supply chains are not disrupted and goods continue to reach the shelves, agreements on security, transit, haulage, drivers, (sales taxes) and other checks will be required to get systems ready for March 2019."
