BRC Shop Prices Eased Further

BRC OCT SHOP PRICE INDEX -1.2% Y/Y VS -1.6% Y/Y SEP

BRC OCT SHOP PRICE INDEX +0.3% M/M VS -0.1% M/M SEP

UK annual shop prices fell again in Oct, although at a slower pace than in the previous month. The BRC shop price index dropped by 1.2% y/y, registering above the 6-mo avg of -1.6% but below the 1-year avg of -1.1%. While food inflation remained unchanged at 1.2% y/y, non-food prices eased at a slightly slower pace of 2.7% in Oct. This was the shallowest decline of non-food prices since the start of the pandemic, according to the BRC. Rising Covid-19 cases, stricter restrictions and the fear of unemployment will continue to weigh on spending, hence discounting is likely to continue for months to come. The report noted the concerns regarding Brexit and that prices are likely to rise in the absence of a zero-tariff deal.