In February 2024, shop prices in the UK experienced their most sluggish increase since March 2022, according to data from the British Retail Consortium (BRC).
The BRC reported a 2.5% increase in shop price inflation for February, marking the smallest uptick since March 2022. Helen Dickinson, Chief Executive of the BRC, noted a 0.1% decrease in food prices compared to the previous month. This decline was attributed to reduced input costs for energy and fertilizers, as well as intense competition among retailers to maintain competitive pricing.
Dickinson emphasized that while supply chain pressures have started to ease, significant uncertainties persist, particularly amidst escalating geopolitical tensions.
The Bank of England is likely to view this lower inflation favorably. The upcoming policy meeting scheduled for March 21 will provide further insight into the central bank's response. Photo by Velela at English Wikipedia.