Discounts take non-food inflation to 10-month low

AGGRESSIVE discounting by retailers caused non-food inflation to decelerate to just one per cent, its slowest rate of growth since November 2009, the British Retail Consortium (BRC) will say today.

Overall, shop price inflation remained at 1.5 per cent thanks to an acceleration in food inflation to 2.5 per cent.

Stephen Robertson, director general of the BRC, said: “Shop prices have remained stable largely due to aggressive discounting driving non-food inflation down to its lowest rate since November 2009.”

The BRC continues to believe that the the past period of high and volatile shop price inflation appears to be over for now, although it added that the recent shock in the supply of wheat is likely to put pressure on food inflation in the coming months.