Inflation Driven by Food Prices, Non-Food Items Decline
- Shop prices increased for two consecutive months
- Inflation rose by 0.2% from the previous month
- Food prices up 1.9% year-on-year, non-food items fell by 0.9%
- Brexit uncertainty and global commodity conditions contribute to inflationary pressures
Shop prices have increased for two consecutive months, marking the first time in five years. Inflation rose by 0.2% from the previous month, with food being the main driver of price hikes. Food prices saw a 1.9% year-on-year increase, while ambient and shelf-stable food rose by 2.4%, and fresh food grew by 1.6%. Non-food items fell by 0.9% compared to August. The British Retail Consortium (BRC) cited the prospect of a ‘no deal’ Brexit as part of the reason for higher food prices, predicting consumers could face up to a 29% surge in products like beef if the UK leaves the EU without an agreement. Despite wage growth across the economy, there is pressure on consumer wallets from energy and travel costs. Retailers are expected to maintain grocery spend by making savings elsewhere in household expenditure.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the increase in shop prices based on the British Retail Consortium and Nielsen Shop Price Index, with specific details on food price increases and the potential impact of a no-deal Brexit. It also includes expert opinions from relevant sources.
Noise Level: 3
Noise Justification: The article provides relevant information about the increase in shop prices and attributes it to various factors such as Brexit and global commodity conditions. It also includes quotes from experts in the field. However, it could benefit from more detailed analysis of the long-term implications and potential solutions for consumers.
Financial Relevance: Yes
Financial Markets Impacted: UK retail and food industry
Financial Rating Justification: The article discusses the increase in shop prices, which impacts consumer spending and potentially affects the UK economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
www.retailsector.co.uk