Retailers Struggle with Uncertainty Amidst Pandemic and Brexit

  • Shop prices fell by 1.6% in August compared to a decrease of 1.3% in July
  • Non-food prices dropped by 3.4%, below the 12 and six-month average declines of 2.4% and 3.3% respectively
  • Food inflation eased to 1.3% from 1.5% in July, fresh food inflation slowed to 0.2% from 0.9%
  • Cheaper non-food goods due to promotions and sales by retailers
  • Lower prices under threat from COVID-19 safety measures costs and potential no-deal Brexit consequences

Shop prices have continued to fall, dropping by 1.6% in August compared to a decrease of 1.3% in July, according to the British Retail Consortium (BRC). Non-food prices fell even further at 3.4%, below the 12 and six-month average price declines of 2.4% and 3.3%. Food inflation eased to 1.3% from 1.5% in July, while fresh food inflation slowed to 0.2% from 0.9%. Retailers have been offering promotions and sales to entice customers during the pandemic, but these lower prices may be at risk due to increased costs related to COVID-19 safety measures and a potential no-deal Brexit. Helen Dickinson OBE, BRC’s chief executive, warns that without a tariff-free deal with the EU, consumers will face higher prices and supply chain disruptions.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the changes in prices for various categories of goods, quotes from a relevant source, and discusses potential future impacts on prices due to Brexit negotiations.
Noise Level: 3
Noise Justification: The article provides relevant information about shop prices and inflation trends, with a focus on the impact of COVID-19 and potential consequences of a no-deal Brexit. It includes quotes from an expert source and offers insights into possible future outcomes.
Financial Relevance: Yes
Financial Markets Impacted: UK retail sector
Financial Rating Justification: The article discusses changes in shop prices and potential impacts on consumers and retailers due to COVID-19 measures and Brexit negotiations, which are relevant to the financial situation of both consumers and companies in the UK retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk