Inflation Pressure Easing on Consumers, Non-Food Retail Landscape Shifts

  • Shop price deflation deepened to 0.8% in February compared to 0.5% in January
  • Non-food prices deflation rate increased to 2.2% from 1.9% in January
  • Fresh food inflation slowed down to 0.9%, lowest since September 2017
  • British Retail Consortium CEO Helen Dickinson: peak of pound fall impact passed
  • Earnings still falling in real terms, savings unlikely to support spending
  • Mike Watkins of Nielsen: food retailers see sales growth but not all price increases passed onto shoppers

Shop prices deflated by 0.8% in February compared to January’s 0.5%, according to the British Retail Consortium. Non-food prices fell at a rate of 2.2%, deepest since April 2017. Fresh food inflation slowed to 0.9%, lowest since September 2017. CEO Helen Dickinson said this indicates passing peak of post-Brexit inflation pressure, but consumer spending growth may not increase. Mike Watkins of Nielsen noted food retailers’ sales growth, but cautious consumers and non-food price deflation continue.

Factuality Level: 8
Factuality Justification: The article provides accurate information from reputable sources (British Retail Consortium) and quotes experts in the field. It presents data on shop price deflation and fresh food inflation rates, as well as insights from industry professionals. The information is relevant to the topic and not sensationalized or misleading.
Noise Level: 3
Noise Justification: The article provides relevant information on shop price deflation and its impact on consumer incomes and spending, with quotes from experts in the field. However, it could benefit from more analysis or context to provide a deeper understanding of the long-term trends or consequences of these changes.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector
Financial Rating Justification: The article discusses shop price deflation and its impact on consumer incomes and spending, which affects the retail sector and can impact financial markets through changes in consumer behavior and company performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

Reported publicly: www.retailsector.co.uk