British high street retail stores witnessed the steepest decline in almost two years during early March, which could worsen further on account of the coronavirus crisis. According to latest data, shop prices reduced by 0.8% YoY during the first week of March, worse than the 0.6% decline seen during the corresponding week of the previous month.

Food prices increased by 1.1% on an annual basis while the prices of non-food items reduced by 1.9% in the first week of March. Grocery sales soared to a record high of 10.8 billion pounds during the four weeks till March 22, registering a gain by nearly 20%, even before the lockdown advisories were issued by the government.

The ongoing coronavirus pandemic is expected to drive greater volatility in prices, especially those of food items in the coming months. Meanwhile, consumer demand for non-essential goods is expected to remain subdued for at least as long as the lockdown measures remain in the country.