Retailers said on Wednesday that prices in Britain shops have witnessed the highest rise in past six years in January. They mentioned that they weren’t at risk of inflation until the country can avoid a no-deal Brexit.
The British Retail Consortium said that they the prices in shops have increased by .4% in comparison with a year earlier, the most since April 2013. In December they shoot up to an annual .3%.
Retailers try are trying hard to hold prices amid the growing online competition and shaking consumer confidence as the Britain nears the due date to leave the European Union,
Despite the rapidly growing shop prices in the last four months, the BRC continue to say that consumers don’t need to worry much as the main upward pressure on prices is set to ease soon.
Helen Dickinson, BRC chief executive said that the prices of several goods are likely to increase in the weekly shopping basket only if the UK exits the EU on a no-deal note on March 29.
British Prime Minister Theresa May is finding it very hard to get the support of her own Conservative Party for her plans to take UK out of the EU within less than 60 days, which is further raising the fears of border delays and a dip in the value of pound making imports expensive eventually.
In January, the food prices inflation touched an annual rate of 1.5% despite a rapid increase in perishable items’ costs. The pricing of the non-food items have witnessed smallest fall since March 2013.
In December, the official measure of consumer price inflation in Britain was 2.1%, little above the 2% target set by the Bank of England. According to BOE, the inflation is likely to fall following its move to raise interest rates gradually,
Nandini Roy Choudhury is a thought leader and subject matter expert on a range of industries, notably retail & consumer goods. Her analytical skills and lucid qualitative analysis have made her an authoritative figure on this domain.