UK Shop Prices Fall at Fastest Rate Since 2021
Prices in UK shops are falling at the fastest rate since 2021 despite rising fresh food inflation. Overall shop price deflation was 0.6% in September, led by reductions in non-food items amid low demand and high household expenses on essentials. Fresh food inflation rose to 1.5% as wet weather and delayed imports impacted prices, with notable increases in olive oil costs.
Prices in UK shops are falling at the fastest rate since 2021 despite rising fresh food inflation.
In September, overall shop price deflation was 0.6%, compared to 0.3% in August, as per the British Retail Consortium (BRC).
The deflation was driven mainly by reductions in non-food items like clothing and furniture, due to low demand and high household expenses on essentials.
Fresh food inflation rose to 1.5% from August's 1%, affected by wet weather impacting UK production and delayed exotic fruit imports.
Olive oil prices surged by 42% year-on-year to over £9.12 per litre, partly due to decreased production in Greece, Morocco, and Turkey, as well as extreme conditions in Spain and Italy.
Packaged food prices remained high at 3.3% due to increased cocoa and sugar prices.
BRC Chief Executive Helen Dickinson highlighted intense competition and discounts contributing to the deflation and urged government action on business rates in the upcoming budget, warning that external factors could reverse the trend.
In September, overall shop price deflation was 0.6%, compared to 0.3% in August, as per the British Retail Consortium (BRC).
The deflation was driven mainly by reductions in non-food items like clothing and furniture, due to low demand and high household expenses on essentials.
Fresh food inflation rose to 1.5% from August's 1%, affected by wet weather impacting UK production and delayed exotic fruit imports.
Olive oil prices surged by 42% year-on-year to over £9.12 per litre, partly due to decreased production in Greece, Morocco, and Turkey, as well as extreme conditions in Spain and Italy.
Packaged food prices remained high at 3.3% due to increased cocoa and sugar prices.
BRC Chief Executive Helen Dickinson highlighted intense competition and discounts contributing to the deflation and urged government action on business rates in the upcoming budget, warning that external factors could reverse the trend.
