05 March 2025
Bira has expressed concern over the latest figures from the BRC-NIQ Shop Price Index for February 2025.
Speaking about the report, which can be downloaded from the BRC website, Bira, which works with over 6,000 independent businesses of all sizes across the UK, said while overall shop prices remain in deflation, the rise in food prices is worrying for retailers and consumers alike.
Also reported:
- Shop price inflation was unchanged at -0.7% year on year in February, against a decline of -0.7% in January. This is above the 3-month average of -0.8%.
- Non-Food inflation decreased to -2.1% year on year in February, against a decline of -1.8% in January. This is in line with the 3-month average of -2.1%.
- Food inflation increased to 2.1% year on year in February, against growth of 1.6% in January. This is above the 3-month average of 1.8%.
- Fresh Food inflation increased to 1.5% year on year in February, against growth of 0.9% in January. This is above the 3-month average of 1.2%.
- Ambient Food inflation increased to 2.8% year on year in February, against growth of 2.5% in January. This is above the 3-month average of 2.7%.
Andrew Goodacre, CEO of Bira, said: "The retail market is showing a split with essential categories such as food showing inflation and the non-essential sectors having to reduce prices (deflation) to drive sales. It is well known in retail that higher inflation in essentials (food, utilities and petrol are all increasing) has a disproportionate impact on consumer confidence and significantly reduces demand for the non-essential items.
"The extra costs for employers and the 140% increase in business rates from April will add to inflation and continue to damage the wider high street supported by independent retailers."
Helen Dickinson OBE, Chief Executive, British Retail Consortium, said: "While shop prices remained in deflation in February, prices on the month saw the biggest increase in the last year. Breakfast, in particular, got more expensive as butter, cheese, eggs, bread and cereals all saw price hikes. Climbing global coffee prices could threaten to push the morning costs higher in the coming months. In non-food, month on month prices rose as January Sales promotions ended, especially in electricals and furniture. But discounting is still widespread in fashion as retailers tried to entice customers against a backdrop of weak demand.
"Inflation will likely rise across the board as the year progresses with geopolitical tensions running high and the imminent £7bn increase in costs from the Autumn Budget and the new poorly designed packaging levy arriving on the doorsteps of retailers. We expect food prices to be over 4% up by the second half of the year. If Government wants to keep inflation at bay, enable retailers to focus on growth, and help households, it must mitigate the swathe of costs facing the industry. It can start by ensuring no shop ends up paying more than they already do under the new business rates proposals, and delaying the new packaging taxes."
Bira's advocacy takes your voice to the heart of Parliament
Bira is at the forefront of championing the cause of independent traders and shopkeepers across Britain.
Our campaigns cover a wide spectrum of issues crucial to the success of independent traders including:
- Combatting the rising tide of retail crime
- Advocating for changes in legislation that promote fairness and flexibility
- Fighting for fairer business rates
- Overall reducing the regulatory burden
- £1 billion damages claim against Amazon by UK retailers
Catch up on key industry insights with podcast episodes available now
High Street Matters will discuss crucial subjects such as consumer trends, relevant government legislation, business rates, parking and staffing, providing top tips to help to help businesses stay ahead of the retail curve.
We’re talking to a cross section of our members from across the UK, from single retail outlets to small chains, and from large department stores to leisure and hospitality.
Listen to the series, available now.
Related News
-
Bira cautiously welcomes new crime and policing bill to tackle retail crime
Bira has cautiously welcomed Labour's Crime and Policing Bill but demands more immediate action and concrete funding to address the retail crime crisis devastating high streets across Britain.
-
New standardised CCTV evidence template created to help police and shops better tackle retail crime
Independent retailers have weathered one of their most challenging years in 2024, with multiple headwinds affecting the sector, according to Bira.
-
'Industrial scale' of shop theft for online selling 'worrying', claims Bira as shopkeeper tracks down stolen goods on Vinted
Bira has warned of the growing "industrial scale" of shop theft to fuel online resale, following an incident where a Dorset shopkeeper traced stolen Jellycat toys being sold on Vinted.
-
Inside the mind of shop thieves - new podcast reveals why criminals target indepedent retailers
Independent retailers are being encouraged to embrace artificial intelligence (AI) to help revolutionise the high street, according to a new podcast released by Bira.