Shop prices fell faster in February

shop chiller

Shop prices fell by 0.6% in February, an even steeper decline than the 0.3% decrease in January, according to the latest British Retail Consortium Price Index.

Food inflation was steady at 1.6% in February and slightly below the 12-month average price increase of 1.7%.

Fresh food inflation eased to 0.6% in February from 0.7% in January, the lowest inflation rate for the category since March 2018.

Conversely, ambient food inflation accelerated to 3.0% in February up from 2.8% in January, representing the highest inflation rate since April 2019.

Helen Dickinson, Chief Executive, British Retail Consortium, said: “Consumers will welcome the fall in shop prices, which accelerated from the previous month. This decline was driven by weak consumer demand and intense competition, which led many retailers to prolong their January sales.

“There are currently huge cost pressures bearing down on retailers, including business taxes and rising wages. The upcoming Budget presents an excellent opportunity to address the broken business rates system.”