5 years of shop price deflation comes to an end

BRC and Nielsen’s latest shop price index has revealed that for the first time in over five years, shop prices entered inflationary territory.

In August, shop prices increased by 0.1%, up from the July decrease of 0.3%. This broke a deflation cycle of 63 months.

“Despite significant increases in costs in the supply chain, this month’s figures show that retailers are keeping price increases faced by consumers to a minimum. However, current inflationary pressures pale in comparison to potential increases in costs retailers will face in the event the we leave the EU without a deal. If that does happen retailers will not be able to shield consumers from price increases,” warns Helen Dickinson OBE, chief executive of BRC.

"The EU and UK negotiating teams must deliver a Withdrawal Agreement in the coming weeks to avoid the severe consequences that would result from such a cliff edge scenario next March."