Shop price inflation eased in February, as “fierce competition between retailers kept price rises in check”.

Shop price inflation was up 1.1 per cent year on year (YOY) from 1 February to 7 February, against growth of 1.5 per cent the month before, according to trade association the British Retail Consortium (BRC). 

Non-food prices dipped 0.1 per cent YOY over the period, compared to 0.3 per cent growth in January, while food inflation increased 3.5 per cent YOY in February, from a 3.9 per cent rise the month before.

Additionally, fresh food inflation climbed 4.3 per cent YOY during the period, from 4.4 per cent growth in January, as ambient food inflation increased 2.3 per cent YOY in February, against a 3.1 per cent uplift in January, the organisation reported.

BRC CEO Helen Dickinson said: “Households got some welcome relief in February as shop price inflation eased. 

“Fierce competition between retailers kept price rises in check, with promotions across health, beauty and fashion. 

“Falling global food costs also fed through, pushing food inflation down, with ambient food inflation dropping to its lowest level in four years.”  

She continued: “While the direction of travel is promising, prices are still rising, and many consumers remain under pressure. 

“Retail operates on thin margins yet has faced relentless tax rises in recent years. 

“The Employment Rights Act could add further complexity if secondary legislation is implemented without an eye firmly on the potential consequences for the cost of doing business and hence the cost of living. 

“Poor implementation decisions by government would stymie job creation and push inflation back up.”

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