UK shop price inflation moves up, but fashion prices stay negative
Shop price inflation increased to 0.7% year on year in July, against growth of 0.4% in June. This is above the three-month average of 0.3%.
And even though non-food categories are still in deflation, the deficit there is narrowing and getting closer to moving upwards. The numbers of Tuesday from the newly renamed BRC-NIQ Shop Price Monitor showed non-food prices falling by 1% in July against a year earlier, which was a smaller drop that the 1.2% fall seen in June. In fact, the three-month average was also at 1.2%.
The biggest impact on UK prices was food, however, and it rose 4%, which was higher than the 3.7% jump in June and the 3.5% three-month average.
And of course, with prices of essentials continuing to rise noticeably, it means consumers are more likely to leave non-food non-essentials like fashion and beauty on the shelves. It's possibly that fact that's keeping non-food prices low as retailers compete for custom in a tough market.
Helen Dickinson, chief executive of the BRC, said: 'Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month. Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices. There were a few bright spots, with discounts in fashion and furniture offering consumers a chance to refresh their wardrobe and homes."
And Mike Watkins, head of retailer and business insight at NIQ, added: 'Consumers' household budgets are coming under pressure with the food retailers now seeing price increases above CPI. However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around. With inflation on the up, high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
3 days ago
- Euronews
Eurozone unemployment stays at a record low despite economic hurdles
The eurozone's seasonally adjusted unemployment rate was 6.2% in June, stable on May's reading and down from 6.4% in June 2024. According to Eurostat data released on Thursday, the EU's unemployment rate was 5.9% in June 2025, also stable compared with May 2025 and down from 6.0% in June 2024. In total, around 12.97 million people in the EU were unemployed this June, of whom 10.7 million were in the eurozone. Among member states, the jobless rate was lowest in Malta (2.5%), while the highest rate of 10.4% was seen in Spain. Job growth is nonetheless stronger in southern eurozone countries, compared to northern economies that have seen unemployment tick up in recent years. Joblessness decreased in Spain, Italy and Portugal, while the rate remained stable in Germany, France, Belgium and the Netherlands. Countries including Austria, Poland, Denmark, and Finland experienced increases. 'The eurozone economy is facing huge uncertainty now, but business surveys about activity and hiring actually don't look that bad,' said Bert Colijn, ING's chief economist in the Netherlands. 'This makes it likely that unemployment will continue to trend around the current all-time lows. Low unemployment dampens the impact of economic uncertainty on domestic demand, which contributes to our view of continued economic growth in the coming quarters.' Easing inflation Certain member states also released inflation data on Thursday. France's INSEE recorded annual consumer price inflation at 1% in July, unchanged compared to June's annual figure, while price pressures increased by 0.2% month-on-month in July. Italian inflation was unchanged from June's annual figure at 1.7% in July, according to Istat, slightly higher than expectations. On a monthly basis, CPI rose by 0.4%.
Fashion Network
5 days ago
- Fashion Network
UK shop price inflation moves up, but fashion prices stay negative
UK shop price inflation rose year on year in July, continuing an upwards trend that could dent consumer spending overall. Shop price inflation increased to 0.7% year on year in July, against growth of 0.4% in June. This is above the three-month average of 0.3%. And even though non-food categories are still in deflation, the deficit there is narrowing and getting closer to moving upwards. The numbers of Tuesday from the newly renamed BRC-NIQ Shop Price Monitor showed non-food prices falling by 1% in July against a year earlier, which was a smaller drop that the 1.2% fall seen in June. In fact, the three-month average was also at 1.2%. The biggest impact on UK prices was food, however, and it rose 4%, which was higher than the 3.7% jump in June and the 3.5% three-month average. And of course, with prices of essentials continuing to rise noticeably, it means consumers are more likely to leave non-food non-essentials like fashion and beauty on the shelves. It's possibly that fact that's keeping non-food prices low as retailers compete for custom in a tough market. Helen Dickinson, chief executive of the BRC, said: 'Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month. Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices. There were a few bright spots, with discounts in fashion and furniture offering consumers a chance to refresh their wardrobe and homes." And Mike Watkins, head of retailer and business insight at NIQ, added: 'Consumers' household budgets are coming under pressure with the food retailers now seeing price increases above CPI. However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around. With inflation on the up, high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum.'
Fashion Network
5 days ago
- Fashion Network
UK shop price inflation moves up, but fashion prices stay negative
UK shop price inflation rose year on year in July, continuing an upwards trend that could dent consumer spending overall. Shop price inflation increased to 0.7% year on year in July, against growth of 0.4% in June. This is above the three-month average of 0.3%. And even though non-food categories are still in deflation, the deficit there is narrowing and getting closer to moving upwards. The numbers of Tuesday from the newly renamed BRC-NIQ Shop Price Monitor showed non-food prices falling by 1% in July against a year earlier, which was a smaller drop that the 1.2% fall seen in June. In fact, the three-month average was also at 1.2%. The biggest impact on UK prices was food, however, and it rose 4%, which was higher than the 3.7% jump in June and the 3.5% three-month average. And of course, with prices of essentials continuing to rise noticeably, it means consumers are more likely to leave non-food non-essentials like fashion and beauty on the shelves. It's possibly that fact that's keeping non-food prices low as retailers compete for custom in a tough market. Helen Dickinson, chief executive of the BRC, said: 'Families will have seen their food bills increase as food price inflation rose for the sixth consecutive month. Staples such as meat and tea were hit the hardest as wholesale prices for both categories have been hit by tighter global supplies. This has helped push up overall shop prices. There were a few bright spots, with discounts in fashion and furniture offering consumers a chance to refresh their wardrobe and homes." And Mike Watkins, head of retailer and business insight at NIQ, added: 'Consumers' household budgets are coming under pressure with the food retailers now seeing price increases above CPI. However, price competition helped by promotional activity will still mean that shoppers can save money by shopping around. With inflation on the up, high street retailers will also be concerned about customer retention over the summer holiday season if they are to maintain sales momentum.'
