imageEconomic Indicators4 hours ago (Jun 03, 2020 03:35PM ET)

(C) Reuters. FILE PHOTO: The spread of the coronavirus disease (COVID-19) in Liverpool

LONDON (Reuters) – Prices in shops in Britain fell at the fastest pace since at least 2006 last month as retailers sought to find a way to win over shoppers hit by the coronavirus lockdown, an industry survey showed on Wednesday.

Shop prices fell by 2.4% in annual terms, following a 1.7% drop in April, the British Retail Consortium trade body and market research firm Nielsen said.

It was the biggest fall since the BRC records began in 2006.

Clothing and furniture saw the sharpest price drops while food prices increased slightly due to higher business costs, implementing social distancing measures and labour shortages in the industry.

“We expect to see continued upward pressure on food prices from the effects of the pandemic in the coming months, while non-food prices are likely to remain deflationary with subdued sales,” Helen Dickinson, the BRC’s chief executive, said.

Britain’s most closely watched inflation rate fell to 0.8% in April and could go negative soon, according to Bank of England Deputy Governor Ben Broadbent.

Britain has reopened outdoor markets and car showrooms and all other non-essential retail are set to follow suit from June 15 if the government’s social distancing requirements are met.

UK shop prices fall at fastest pace since at least 2006: BRC

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published. Required fields are marked *