Wednesday 2 February 2022

Shop Prices Rise At Fastest Pace Since 2012

The latest BRC-NielsenIQ Shop Price Index confirms that inflation is accelerating in both the food and non-food retail sectors.

The overall figure rose from 0.8% in December to 1.5% in January, the highest rate of inflation recorded by the index since December 2012.

Official figures last month showed that wider consumer inflation jumped to 5.4% in December, the highest rate for 30 years, driven up by higher energy costs and rising retail prices.

The BRC and NielsenIQ figures are based on price changes of commonly bought items in retail stores. They showed that food inflation increased from 2.4% to 2.7% in January, the highest inflation rate since October 2013.

NamNews Implications:

  • From a NAM’s POV, the issue is how consumers view ‘real’ on-shelf inflation.
  • i.e. inflation that affects their purchasing behaviour and hence demand.
  • And street-level inflation is perceived to be running at 5%-10%, with more to come…
  • And any action by the Bank of England to curb inflation will be a further deterrent to spending…
  • See 'Pound-in-your-pocket Inflation' for more details


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