-UK May BRC Shop Price Index 1.5% y/y vs 1.3% Apr
LONDON (MNI) – High street inflation increased slightly in May,
according to the latest Shop Price Index report from the British Retail
Consortium and Nielsen.
Data from BRC-Nielsen showed shop prices increased to 1.5% on the
year from 1.3% in April. The marginal rise was driven by non-food
deflation slowing to 0.1% from 0.5% in April while food prices remained
at up 4.3% on the year for the second consecutive month.
While official data showed inflation fell back sharply in March,
the rise in the Shop Price Index lends support to the Bank of England’s
Inflation Report forecasts which predict CPI will stay stuck around its
current level in the coming months.
The BOE’s May Inflation Report projections show CPI averaging 3.19%
in Q2 2012 and 3.15% in Q3 and only falling below its 2% target by Q3
2013.
Bank of England Deputy Governor Charlie Bean recently said that he
expects inflation to continue to decrease from where it is “but it may
bobble around its current level for a few months yet.”
Commenting on the data, Stephen Robertson, British Retail
Consortium Director General, said:
“Food inflation held steady as easing commodity prices helped
combat rising property and distribution costs. There’s still a
possibility of future supply shocks but the outlook for inflation looks
set to remain at modest levels. Apart from a blip in March, food
inflation’s been stable since last October.”
-London newsroom 0044 207 862 7492; email:wwilkes@marketnews.com
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