British retailers have reported the smallest price fall since the start of the COVID pandemic, partly due to shoppers buying more clothing and footwear as lockdowns eased, and they said price pressures would continue to increase for the rest of 2021. likely to increase.
The Bank of England is watching closely for signs of how fast inflation is rising, with the British Retail Consortium’s store price index for May showing prices were down 0.6% from a year earlier, compared to the year in April. had declined by 1.3%.
This was the smallest drop since February 2020.
The BRC’s shop price index typically reflects year-on-year price declines, which covers a wide range of goods and services, in contrast to the broader measure of consumer price inflation targeted by the BOE.
The BoE forecasts that the CPI could exceed its 2% target and is likely to rise above 2.5% by the end of 2021, as global energy prices rise and central bank temporary pressures and unilateral impacts linked to the pandemic What does he see?
The BRC said British shoppers were eager to spend last month on new clothing and shoes as social-distancing restrictions were eased, allowing people to meet in pubs and restaurants.
It added that the supply chain disruption associated with COVID has also pushed up the cost of furniture and electrical items.
BRC chief executive Helen Dickinson said prices are likely to rise further later this year.
“Global food prices are currently at their highest level in seven years, shipping costs have tripled since 2019, and commodity prices are climbing. We will likely see these costs filter through in the second half of this year ,” He said.
Some of the new post-Brexit rules that affect food imports from the EU take effect from 1 October, others come later, which the BRC warned would drive prices up as well.
The BRC collected price data between May 3 and May 7.
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