UK shop prices fall at faster pace in August, but pressures ahead: BRC
[LONDON] British shop prices fell at a faster rate in August, although the weak pound could start to feed through to retailers in the months ahead, an industry survey showed on Monday.
Shop prices fell 2.0 per cent in August compared with 1.6 per cent in July, according to the British Retail Consortium (BRC).
Food prices fell at the fastest pace on record, dropping 1.1 per cent from 0.8 per cent.
"The devaluation of sterling in wake of the referendum will put upward pressure on shop prices," said BRC Chief Executive Helen Dickinson. "But that's likely to take several months to properly feed through, given that retailers won't feel the brunt of the cost increases until existing contracts with foreign suppliers come to an end."
Sterling hit a one-month high on Friday, topping US$1.33 but it is still about 11 per cent below its level against the dollar before the June 23 vote to leave the European Union.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
China 2024 growth outlook raised to 4.8%, deflation risk lingers
Luxury sector outlook clouded by China’s slow recovery
TikTok CEO expects to defeat US restrictions: ‘We aren’t going anywhere’
TikTok artists and advertisers to stay with app until ‘door slams shut’
Biden signs Ukraine aid, TikTok ban Bills after Republican battle
UAE announces US$544 million for rain repairs, says lessons 'learned'