Shop prices fell in January 2021 by 2.2%, easing the post-Christmas blues, according to a new report by the British Retail Consortium (BRC).
The BRC-Nielsen Shop Price Index for January 2021 has been published and is available to download.
The key points are:
- Shop Prices fell in January by 2.2%, below December’s decrease of 1.8%. This is the lowest deflation rate since May 2020. This is below the 12- and 6-month average price decreases of 1.5% and 1.7%, respectively.
- Non-Food prices fell by 3.6% in January, compared to a decline of 3.2% in December. This is below the 12- and 6-month average price declines of 3.2% and 3.3%, respectively.
- Food inflation eased to 0.2% in January, down from 0.4% in December. This is the lowest inflation rate for the category since January 2017. This is below the 12- and 6-month average price increases of 1.2% and 0.9%, respectively.
- Ambient Food inflation slowed to 1.7% in January, down from 2.3% in December. This is the lowest inflation rate for the category since September 2019. This is below the 12- and 6-month average price increases of 2.5% and 2.4%, respectively.
Fresh food prices fell for the second consecutive month in January with prices decreasing by 0.8%, compared to a decline of 0.9% in December. This is below the 12- and 6-month average price growth rates of 0.3% and -0.1%, respectively.
Helen Dickinson OBE, Chief Executive, BRC, said: “The January blues may have been slightly eased for many consumers thanks to ongoing falling prices this month. Post-Christmas sales and the national lockdown drove non-food prices down – especially for clothing and DIY goods. Meanwhile, food prices rose at their slowest rate since January 2017 with supermarkets continuing to fiercely compete to offer hard-pressed customers the best combination of price and quality.
“Brexit-related red tape, rising global shipping costs and food commodity prices, as well as the weight of forced closures and restrictions for many retail businesses, means that pricing pressures are stacking up for retailers. With consumers’ finances under increasing pressure and an intensely competitive environment firms will try to absorb the majority of costs. But with every business dealing with new processes and procedures Government must act quickly to ensure the Northern Ireland Protocol is implemented in a pragmatic and workable way and issues on movements of goods and ecommerce are ironed out quickly to prevent inflation flowing through to customers.”