In March, shop price inflation accelerated to to its highest rate since March 2013 – 0.9%, up from 0.7% in February – driven by food price inflation, reports the latest BRC-Nielsen Shop Price Index.
Non-Food prices were at the same level YoY. Price decreases in several sectors were offset by increases in furniture and DIY proces, among others, with cost pressures built up in the supply chain – either from high oil prices last year, delayed impact of depreciation, or regulatory changes (such as minimum wage increases or automatic pension enrolment) – now being filtered through into final consumer prices.
Mike Watkins, head of retailer and business insight at Nielsen, says: "The upwards pressure on pricing continues across food retailing, and a key driver this month was inflation in ambient food and drink. With shoppers looking to stretch their budget for the weekly grocery shop this will not help volume growth, which has been slowing since the start of the year. For many high street fashion, home and outdoor retailers prices are not increasing, so good news for shoppers as the end-of-season ranges sell through."