London: Inflation in British stores slowed to the lowest level since March 2022, signalling further respite for households as retailers doubled down on promotions and passed on lower costs.
Overall shop prices rose 2.5% in February from a year ago, compared with a 2.9% annual increase the prior month, marking a ninth consecutive monthly decline, according to the British Retail Consortium (BRC).
Easing supply-chain pressures, falling input costs for energy and fertilisers, and fierce competition between retailers were key drivers, BRC chief executive officer Helen Dickinson said.
The data adds to evidence of a broader slowdown in inflation, which rose less than forecast in January, in tandem with signs the economy may have already emerged from a shallow recession.
Heavy discounting aided a rebound in retail sales last month after a dire December, while a recent survey showed Britain’s private sector firms are the most optimistic in two years amid recovering real household incomes.
Food retailers in particular have slashed prices and passed on cuts coming through supply chains, according to Mike Watkins, NielsenIQ’s head of retail and business insight. — Bloomberg
