–UK BRC May Shop Prices Up 2.3% y/y vs Up 2.5% y/y Apr
–UK BRC May Food Prices Up 4.9% y/y vs Up 4.7% In Apr
–UK BRC May Non-Food Prices Up 0.8% Vs Up 1.2% In Apr
LONDON (MNI) – Shop price inflation decelerated in May, falling to
its lowest level since December last year, driven down by softer growth
in non-food prices, which more than offset a further rise in food
inflation.
The British Retail Consortium-Nielsen Shop Price Index (SPI) was up
2.3% on the year in May, falling from up 2.5% in April. The SPI rose
just 0.1% on the month, following April’s 0.3% monthly rise.
Food price inflation rose to 4.9% on the year in May, compared to
4.7% in April, hitting its highest level since June 2009. Non-food
inflation eased to a 0.8% pace in May from April’s 1.2%. On a monthly
basis, food prices were up 0.6% in May and non-food was down 0.2%.
Stephen Robertson, British Retail Consortium director general,
blamed rising commodity prices for the increase in food price inflation.
“Recent volatility in the cost of key commodities, linked to dry
weather and global demand, is now working through to the shop price of
some food,” Robertson said.
The BRC revealed fresh food inflation rose markedly in May, hitting
4.2% from 3.3% in April, and rising 0.5% on the month. Like overall food
prices, fresh food saw its largest yearly price increase since June
2009.
Ambient food, food altered for a longer shelf-life, saw prices drop
to up 6.0% on the year from up 6.9% in April.
While UK food prices were running at 23-month highs, the latest
United Nations data show global food prices easing, but any relief for
food retailers may prove temporary.
Global agricultural prices fell back just over 1% May, according to
the United Nations Food and Agriculture Organisation,
The UN FAO Food Price Index fell to 232 points in May from 235 in
April, with the index still 37% up on the year.
The FAO warned that “high and volatile agricultural commodity
prices are likely to prevail for the rest of this year and into 2012.”
–London newsroom: 4420 7862 7491; email: drobinson@marketnews.com
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