The British Retail Consortium (BRC) has claimed that the ongoing price war between major UK retailers has provided a boost to cash-strapped consumers.
According to the latest BRC-Nielsen Shop Index, shop price inflation declined to two per cent last month from 2.1 per cent in October, as big-name stores sought to woo customers with discounts. Food inflation, meanwhile, fell to four per cent from 4.2 per cent.
“At a time when petrol prices and utility bills are sky-high, fierce competition in the retail sector is helping hard-pressed families manage their budgets,” said BRC director-general Stephen Robertson. “For a second consecutive month the supermarket price war has helped reduce food inflation.”
Mr Robertson noted that inflationary pressures were on the decline as commodity prices receded, but pointed out that retailers had also had to absorb the impact of recent hikes in the cost of gas and electricity whilst simultaneously cutting the prices they charged their own customers.
Earlier in the week, the BRC urged the government to step up its efforts to support the British retail industry, citing concern over weakness in consumer spending and confidence.
