Shop Prices Across Britain Declined in April But Could Pick Up as Stores Reopen
Recent research by the British Retail Consortium (BRC) reveals a decline in both overall shop prices and even prices of food through April.
Recent research by the British Retail Consortium (BRC) reveals a decline in both overall shop prices and even prices of food through April. The BRC Shop Price Index registered a 1.3% fall in shop prices, with the pace of decline easing since the previous month when they had fallen by 2.4%.
Food prices also registered a decline for April, falling by 0.6%. However, with the economy reopening and consumers rushing back to shop after months of lockdowns, the BRC has cautioned that the fall in shop prices could reverse soon.
Chief executive at the BRC, Helen Dickinson, observes, “Falling prices are unlikely to last; in the months ahead retailers will have to battle the cost pressures from Brexit red-tape, rising shipping costs due to international supply issues, as well as increasing global food and oil prices. As these costs filter through, retailers may be left with no option but to pass on some of these costs to consumers.”
The drop in shop prices was also a result of discounts being offered by non-food retail outlets in a bid to get rid of old stock ahead of the easing of lockdowns. Meanwhile, costs of some products like furniture climbed higher on account of a surge in demand and global supply chain disruptions.
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