Deflation Continues as Non-Food Items See Steepest Decline
- Fifth year of deflation for retail prices
- Shop prices fell by 1% in April
- Deepest period of deflation since last February
- Deflation for non-food items fell by 2.2%
- Food inflation rose by 1% overall
- Fresh food increased by 0.9% and ambient food by 1.2%
- Global commodity prices higher than last year
- Pound’s fall weakening puts pressure on prices
- Brexit negotiations impacting frictionless movement of goods
- Retailers need clarity for affordable prices
- Weak consumer demand affecting sales performance
- Promotional activity continues after Easter
Retail prices have experienced a fifth consecutive year of deflation, with shop prices falling by 1% in April. This marks the deepest period of deflation since February last year. Non-food items saw the most significant decline at 2.2%, while food inflation increased overall by 1%. Fresh food rose by 0.9% and ambient food by 1.2%. The fall in the pound’s value has contributed to this trend, as well as global commodity prices being higher than last year. As Brexit negotiations continue, addressing frictionless movement of goods across borders becomes increasingly important for retailers to maintain affordable prices for consumers. Weak consumer demand and unseasonable weather have impacted sales momentum, but promotional activities persist after Easter to attract shoppers.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the Shop Price Index, deflation rates, and their causes. It also includes quotes from experts in the field to support its claims.
Noise Level: 7
Noise Justification: The article provides relevant information about the current state of shop prices and inflation in the UK, but it could benefit from more analysis or context on the potential long-term effects of Brexit negotiations on retailers and consumers.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector and food industry
Financial Rating Justification: The article discusses deflation in retail prices, which affects the financial performance of retailers and impacts the food industry through changes in commodity prices. It also mentions Brexit negotiations that may affect the movement of goods across borders and consumer demand.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no mention of an extreme event in the text.
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