Fastest Rate of Deflation Since 2017 – What’s Next for Consumers?

  • UK shop prices fell at their fastest rate since February 2017
  • Deflation in non-food prices decreased at a rate of 1.9% in March
  • Food inflation slowed down to 0.4%, lowest rate since February 2017
  • Retailers passing positive impact of pound’s depreciation to shop floor
  • Wage increases may put pressure on prices for consumers
  • Support for zero-tariff trade deal between EU and UK encouraged
  • Non-food retailers need to keep price increases minimal or make cuts
  • Supermarkets to focus on lowering prices with promotions
  • 27% of shopping basket value discounted, a 10-year low

UK shop prices have fallen at their fastest rate since February 2017, with non-food deflation decreasing by 1.9% in March. Food inflation slowed to 0.4%, the lowest rate since February 2017. Retailers are passing on the positive effects of currency depreciation to shop floors, providing some relief for consumers. However, potential wage increases may put pressure on prices. A zero-tariff trade deal between the EU and UK is encouraged, but retailers must reduce customs friction to mitigate price pressures. Non-food retailers need to keep price hikes minimal or make cuts as consumer demand remains weak. Supermarkets will focus on lowering prices with promotions, offering discounts at a 10-year low (27% of shopping basket value).

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about UK shop prices, deflation rates, and expert opinions on the subject.
Noise Level: 3
Noise Justification: The article provides relevant information about UK shop prices and inflation rates, with quotes from experts in the field. It stays on topic and supports its claims with data. However, it could benefit from more analysis or discussion of potential long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: UK retail and food industry
Financial Rating Justification: The article discusses changes in shop prices, inflation rates, and their impact on consumer spending, which are financial topics related to the UK retail and food industry.
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.

Reported publicly: www.retailsector.co.uk