UK: Food price inflation at its lowest level in eight years
UK food price inflation has hit its lowest level in eight years, falling to 0.8% in March, compared to 1.1% in February. The latest figures from the BRC-Nielsen Shop Price index has reported overall shop price inflation increased to 1.7% in March, up from 1.4% in February.
Helen Dickinson, Director General of the British Retail Consortium, said: “Retailers have been responding to their customers with keen prices and promotions to maintain market share, and March saw the deepest deflation for eight years and the lowest inflation ever recorded for food. With food and drink representing 15 per cent of disposable income for the least affluent third of households, retail’s significant contribution to maintaining standards of living is clear.
“The outlook on commodity prices shows some upwards pressures. So, while we know retailers will be working hard to sustain these low prices, continued support from government on other costs such as business rates reform and the recent reliefs for National Insurance Contributions will be key to maintaining this positive trend.”
Source: Talking Retail