UK shop price inflation ‘back to normal’ BRC says

British Retail Consortium (BRC) Shop Price Index for May 2024 dropped back to 0.6% y/y

• expected 1.0%, prior 0.8%

BRC chief executive Helen Dickinson:

• “Shop price inflation has returned to normal levels. Ambient food inflation remained stickier, especially for sugary products which continued to feel the effects of high global sugar prices.
• “In non-food, retailers cut furniture prices in an attempt to revive subdued consumer demand for big-ticket items, and football fans have been able to grab some bargains on TVs and other audio-visual equipment ahead of this summer’s Euros.”

The BRC survey is run in conjunction with data analysis firm NielsenIQ. NIQ comment:

• had seen “some improvement” in consumer sentiment

Back to normal inflation, if true, could prompt near term Bank of England rate cuts. June or August is the current market expectation.

This article was written by Eamonn Sheridan at www.forexlive.com.