Retailers battle to win shoppers in the face of a cost-of-living crisis

  • UK shop price inflation fell to a two-year low in March
  • Driven by falling food costs and competition between retailers
  • Rate eased to 1.3% last month, down from 2.5% in February
  • Non-food inflation fell to 0.2% in March
  • Food inflation fell to 3.7% from 5%
  • Retailers are competing fiercely to bring prices down for customers
  • Retailers face pressures from rises in business rates and new border checks
  • Intense competition among supermarkets driving footfall with price cuts and promotions

UK shop price inflation in March fell to the lowest level since December 2021 as retailers battled to win shoppers, driven by falling food costs and competition between retailers. The rate eased to 1.3% last month, down from 2.5% in February, and below the three-month average of 2.2%. Non-food inflation fell to 0.2% in March, while food inflation fell to 3.7% from 5%. Retailers are competing fiercely to bring prices down for their customers, with prices of electricals, clothing, and footwear falling as retailers increased promotions. However, retailers face significant pressures in the coming months, including rises in business rates and new border checks, which could put progress on bringing down inflation at risk. Intense competition among supermarkets is driving footfall with price cuts and promotional offers.

Factuality Level: 9
Factuality Justification: The article provides specific data from the BRC-NielsenIQ Shop Price Index to support its claims about UK shop price inflation in March. It includes quotes from industry experts to provide additional context and insight into the factors influencing the inflation rates. The information presented is clear, relevant, and based on factual data, without any apparent bias or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about UK shop price inflation in March, including the reasons behind the decrease and the potential challenges faced by retailers. It stays on topic and supports its claims with data from the BRC-NielsenIQ Shop Price Index. The article also includes quotes from industry experts, adding credibility to the information presented. Overall, the article is focused, informative, and provides actionable insights for readers interested in retail and economic trends.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information on UK shop price inflation, which can have an impact on consumer spending and retail companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses shop price inflation and its impact on retailers and consumer spending. While there is no extreme event mentioned, the information is relevant to financial markets and companies.

Reported publicly: www.retailgazette.co.uk