U.K. shop-price inflation loses steam in May on lower food prices, report says
By Michael Susin
Shop-price annual inflation in the U.K. slightly rose in May as lower energy and commodity costs started to ease some of the staples prices, the latest report by NielsenIQ and the British Retail Consortium said Tuesday.
Prices at U.K. stores in the period May 1 to May 7 were 9.0% higher on year, slightly up from an 8.8% increase in April, and above the 3-month average rate of 8.9%. Despite losing pace, the price inflation reached a new record high, the report said.
Food inflation decelerated to 15.4% from 15.7% in April and was the same as the three-month average rate as well as the second highest inflation rate in the food category on record.
However, nonfood inflation accelerated to 5.8% from 5.5% in April and above the three-month average rate of 5.7%.
"The slow in inflation was largely driven by lower energy and commodity costs starting to filter through to lower prices of some staples including butter, milk, fruit and fish. [...] While nonfood inflation rose, consumers are benefiting from heavy discounts in footwear as well as books and home entertainment," British Retail Consortium Chief Executive Helen Dickinson said.
"While there is reason to believe that food inflation might be peaking, it is vital that government does not hamper this early progress by piling more costs onto retailers and forcing up the cost of goods even further," she added.
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May 30, 2023 01:33 ET (05:33 GMT)
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