DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Shop Price Growth Softest Since May 2022

UK DATA
DataHomepagemarkets-real-timeData BulletBulletMarketsFixed Income BulletsForeign Exchange Bullets

BRC-NielsenIQ Shop Price inflation decelerated to +2.9% Y/Y in January (vs +4.3% Y/Y prior), whilst shop price inflation fell for the first time since July 2023 by -0.7% M/M (vs +0.4% growth in December). Note that we have not seen a M/M fall of -0.7% since January 2021.

  • The disinflation was due to both food and non-food inflation components falling to +6.1% Y/Y (vs +6.7% Y/Y prior) and +1.3% Y/Y (vs +3.1% Y/Y prior).
  • The rate of disinflation in non-food has increased relative to food prices, as non-food prices deflated on a monthly basis.
  • In the graph below, it shows disinflation continuing, with both the BRC price growth and ONS NEIG and Food inflation rate declining since around May-23.
  • The latest BRC print indicates that NEIG inflation is likely to continue this trend in the coming month.
  • Chief Executive of the BRC cautioned whilst progress is being made, "Rising geopolitical tensions will also add to uncertainty and costs in supply chains."
  • This week is likely to see the MPC keep rates on hold at 5.25%, however the market will be focused on the vote split, any change to the guidance and the Bank's new inflation forecasts.


193 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

BRC-NielsenIQ Shop Price inflation decelerated to +2.9% Y/Y in January (vs +4.3% Y/Y prior), whilst shop price inflation fell for the first time since July 2023 by -0.7% M/M (vs +0.4% growth in December). Note that we have not seen a M/M fall of -0.7% since January 2021.

  • The disinflation was due to both food and non-food inflation components falling to +6.1% Y/Y (vs +6.7% Y/Y prior) and +1.3% Y/Y (vs +3.1% Y/Y prior).
  • The rate of disinflation in non-food has increased relative to food prices, as non-food prices deflated on a monthly basis.
  • In the graph below, it shows disinflation continuing, with both the BRC price growth and ONS NEIG and Food inflation rate declining since around May-23.
  • The latest BRC print indicates that NEIG inflation is likely to continue this trend in the coming month.
  • Chief Executive of the BRC cautioned whilst progress is being made, "Rising geopolitical tensions will also add to uncertainty and costs in supply chains."
  • This week is likely to see the MPC keep rates on hold at 5.25%, however the market will be focused on the vote split, any change to the guidance and the Bank's new inflation forecasts.