BUSINESS INTELLIGENCE
SHOP PRICES BRC / NIELSENIQ
Higher food prices looming Food prices fall for the fifth consecutive month, but mounting pressures mean this will not be sustainable for much longer.
F
ood deflation slowed to 0.2% in August from July’s deflation of 0.4%, the fifth consecutive month when food prices fell, new research reveals. The BRC-NielsenIQ Shop Price Index for August shows fresh food prices fell for the ninth consecutive month in August, with deflation easing to 0.6% from a decline of 1.0% in July. This is in line with the 12-month average price growth rate of -0.6% and below the six-month average price growth of -0.9%. In addition, ambient food inflation eased to 0.3% in August, down from 0.5% in July. This is below the 12- and six-month average price increases of 1.5% and 0.8%, respectively. Meanwhile, non-food deflation slowed to 1.2% in August, compared to a fall of 1.8% in July. “Food retailers are fighting to keep stable by absorbing as much of their prices down as far as possible. any increase in their supply chain Overall shop price deflation But mounting pressures – from rising eased to 0.8% year-on-year costs as possible.” commodity and shipping costs as well as Helen Dickinson, Chief Execin August compared to July’s decrease of 1.2%. Brexit-related red tape, mean this will not utive of the British Retail ConsorMike Watkins, Head of be sustainable for much longer. tium, added: “Food retailers are Retailer and Business Insight Helen Dickinson fighting to keep their prices down at NielsenIQ, said: “The good as far as possible. But mounting news for shoppers is that shop price changes. With shoppers now returning pressures – from rising commodity and inflation remains below consumer price from their summer holidays many will shipping costs as well as Brexit-related inflation and any moderate increases in be reviewing their household budgets. So red tape, mean this will not be sustainaprices are being driven by wider eco- the next few months will be an impor- ble for much longer, and food price rises nomic conditions and seasonal supply tant time for retailers to keep prices are likely in the coming months.”
20 I SLRMAG.CO.UK / ISSUE 71 / WEDNESDAY 1ST SEPTEMBER 2021
