Period Covered: 01 – 07
March 2025
- Shop price inflation increased to -0.4% year on year in
March, against a decline of -0.7% in February. This is above the
3-month average of -0.6%.
- Non-Food inflation increased to -1.9% year on year in March,
against a decline of -2.1% in February. This is in line with the
3-month average of -1.9%.
- Food inflation increased to 2.4% year on year in March,
against growth of 2.1% in February. This is above the 3-month
average of 2.0%.
- Fresh Food inflation decreased to 1.4% year on year in March,
against growth of 1.5% in February. This is above the 3-month
average of 1.3%.
- Ambient Food inflation increased to 3.7% year on year in
March, against growth of 2.8% in February. This is above the
3-month average of 3.0%.
|
|
OVERALL SPI
|
FOOD
|
NON-FOOD
|
|
% Change
|
On last year
|
On last month
|
On last year
|
On last month
|
On last year
|
On last month
|
|
Mar-25
|
-0.4
|
-0.2
|
2.4
|
0.0
|
-1.9
|
-0.2
|
|
Feb-25
|
-0.7
|
0.4
|
2.1
|
0.4
|
-2.1
|
0.5
|
Note: Month-on-month % change refers to changes in the
level of prices.
Helen Dickinson, Chief Executive of the BRC,
said:
“Retailers continue to do all they can to protect customers from
the cost pressures bearing down on the industry. Prices fell for
most non-food categories, which kept year-on-year overall shop
prices in deflation, but at a reduced rate compared to February.
Clothing and footwear was in double digit deflation as a result
of weak consumer demand. Across food, price inflation rose
year-on-year, with ambient food seeing the highest increase. For
example, alcoholic and non-alcoholic beverages both saw price
increases due to changes to duties and the hangover from high
global sugar prices.
“With retailers bracing for significant extra costs which kick in
later this week as a result of the Budget, inflation will likely
accelerate in the coming months. Along with new packaging taxes
later this year, retailers will be shouldering an additional £7bn
in costs. It is crucial that the Employment Rights Bill and
business rates reform don't further inflate costs and increase
red tape.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“There is competition on the high
street as retailers look to pull in reluctant shoppers with
seasonal promotions. However, with upwards pressure on prices,
retailers may also need some focussed price cuts to help footfall
in the run up to the late Easter.”
