BRC-Nielsen: Shop Prices Back to Deflation

The British Retail Consortium and Nielsen have reported the latest Shop Price Inflation Index (SPI) for June.

The SPI measures changes in the price of 500 of the most commonly bought items. The SPI demonstrates the extent to which retailers contribute to inflation through the pricing of commonly bought goods. The SPI is administered by Nielsen, who collate the data on behalf of the BRC. The BRC provides analysis and wider commentary on retail-specific and economy-wide inflation.

Top Line Figures

ALL ITEMS: -0.1% (% change year-on-year)

NON-FOOD: -1.2 (% change year-on-year)

FOOD: +1.8% (% change year-on-year)

FRESH FOOD: +1.4% (% change year-on-year)

AMBIENT FOOD: +2.3% (% change year-on-year)

Helen Dickinson OBE, Chief Executive, British Retail Consortium: 

“Shop prices fell for the first time since October 2018. While the overall fall in prices was small, and food inflation remains steady, it nonetheless represents a welcome break for consumers after several months of inflation. It is also a sign of the fierce competition between retailers, which has long kept prices low for British consumers.

“However, a no-deal Brexit would hinder retailers’ abilities to continue to contain prices, as checks and delays would raise the cost of doing business. The October 31st deadline also comes at the worst possible time for retail – the height of preparations for Christmas and Black Friday, which are peak trading periods, threatening to cause disruption for consumers and businesses, and making further stockpiling of goods almost impossible. It is vital that the next Prime Minister reaches a deal with the EU and avoids the cliff edge.” 

Mike Watkins, Head of Retailer and Business Insight, Nielsen:

“Food inflation is broadly stable, and this looks set to continue over the summer with many supermarkets reducing prices, helping to offset some of the cost increases coming through the supply chain. This is helping shoppers make further savings on household bills as well as providing a much-needed boost to sales. On the non-food high street, retailers are maintaining the level and depth of price cuts, to help drive footfall following dampened demand due to the weather and wavering retail spending." 

Source : Insight DIY Team and BRC-Nielsen

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