LONDON: British customers had been hit by the most important enhance in prices charged by main retailers in greater than 9 years in January, in keeping with a survey that added to indicators of accelerating inflation momentum.
The British Retail Consortium mentioned on Wednesday – a day earlier than the Bank of England is predicted to raise rates of interest for a second time in two months – that shop prices rose by 1.5% in January in contrast with the identical month in 2021.
That was the most important annual enhance since December 2012 and was nearly double December 2021’s 0.8% rise.
Food prices rose by 2.7% – the most since October 2013 and up from 2.4% in December – which mirrored poor harvests, labour shortages and rising international meals prices, the BRC mentioned.
But the larger impression got here from non-food prices rose by 0.9% after falling by 0.2% in December, led by furnishings and flooring which noticed exceptionally excessive demand.
(*10*) shopper worth inflation price, which measures a broader vary of spending, hit a 30-year excessive of 5.4% in December, nearly thrice the BoE’s 2% goal, and is predicted to squeeze demand for non-essentials this 12 months.
“The surge in power and journey prices is now impacting disposable incomes and is prone to dent customers’ willingness to spend,” Mike Watkins, head of retailer and enterprise perception at NielsenIQ, which co-produces the info, mentioned.
Research by NielsenIQ confirmed almost a half of all households cited the rising value of dwelling as their most essential concern. – Reuters