November 30, 2022 00:01 GMT
BRC Shop Price Index Signals Further Inflation
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UK BRC NOV SHOP PRICES +0.9% M/M; OCT +1.3% M/M
UK BRC NOV SHOP PRICES +7.4% Y/Y; OCT +6.6% Y/Y
- UK shop prices continued to see inflationary headwinds in the November BRC report, accelerating by +0.9% m/m and +7.4% y/y, up from +6.6% y/y in October.
- Food inflation again drove the increase, up +12.4% y/y (vs +11.6% in Oct), yet non-food retail recorded a similar 0.7pp uptick to +4.8% y/y. The continued surge in food prices is on the back of increased energy and transport costs, alongside higher animal feed prices.
- Holiday spending is likely to be substantially dampened this year, as households’ disposable income registers the squeeze of soaring inflation and living costs.
- With demand showing signs of slowing, retailers are coming under more pressure to implement seasonal discounts and fix prices on essentials. Any small yet deflationary effects of these pricing strategies will likely feed into slowing inflation in future months.
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