LONDON: UK shop price inflation weakened to a near two-year low in February, the British Retail Consortium reported on Tuesday.
The shop price index posted an annual increase of 2.5% on a yearly basis in February, slower than the 2.9% rise in January. This was the lowest since March 2022. The rate was also below the 3-month average of 3.3%.
Data showed that non-food inflation held steady at 1.3%, the weakest since January 2022. At the same time, food inflation decelerated to5.0% from 6.1% a month ago.
The rate hit the weakest since May 2022. Likewise, fresh food prices gained at a slower pace of 3.4% after a 4.9% rise.
"Shop price inflation has slowed and the underlying trend in prices will be downwards over the next few months," Mike Watkins, head of retailer and business insight, NielsenIQ, said.
"For high street retailers faced with weaker demand, keeping prices stable over the next few months will be key to encourage customers to spend," said Watkins. — dpa
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