–UK BRC July Shop Price Index Up 2.8% y/y vs Up 2.9% June
–UK BRC July Food Inflation Up 5.2% vs up 5.7% June
–UK BRC July Non-food Inflation up 1.3%; Unchanged Vs June
LONDON (MNI) – A decline in food price inflation saw shop price
inflation inch down in July from its June high, according to British
Retail Consortium-Nielsen data.
Shop price inflation fell to 2.8% in July, having spiked to 2.9% in
June, its highest level since October 2008. Food price inflation fell
back to 5.2% from 5.7% in June, with non-food inflation unchanged from
June at 1.3%.
Shop prices were down 0.2% on the month in July, having risen 0.5%
on the month in June.
The fall in food price inflation comes despite the continuing
elevated levels of food components, with the BRC-Nielsen report
attributing the fall, at least in part, to promotional offers.
Nielsen data showed some 39% of all food sales were promotions,
compared to 34% a year ago.
Fresh food prices were up 4.3% in July on a year ago compared with
up 4.7% in June. Ambient food, that is food altered to prolong
shelf-life, saw prices fall to 6.6% from 7.2% in June.
Analysts have found it hard to read across from the BRC-Nielsen
data to the official consumer price data. While the June BRC Shop Price
Index spiked, the headline June CPI dropped to 4.2% from 4.5% in May,
with the largest downward effect coming from games, toys and hobbies as
well as other electronic equipment and books – items that should be
included in the BRC’s non-food component.
–London newsroom: 4420 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,MABDS$]
