The British Independent Retailers Association (Bira) has expressed concern over the latest figures from the BRC-NIQ Shop Price Index for February 2025.
Speaking about the report, which can be downloaded from the BRC website, Bira said that while overall shop prices remain in deflation, the rise in food prices is worrying for retailers and consumers alike.
“The retail market is showing a split, with essential categories such as food showing inflation, and the non-essential sectors having to reduce prices (deflation) to drive sales. It is well known in retail that higher inflation in essentials – food, utilities and petrol – which are all increasing, has a disproportionate impact on consumer confidence and significantly reduces demand for the non-essential items.
“The extra costs for employers, and the 140% increase in business rates from April, will add to inflation and continue to damage the wider high street supported by independent retailers.”
Helen Dickinson OBE, chief executive of the British Retail Consortium (BRC), stated: “Inflation will likely rise across the board as the year progresses with geopolitical tensions running high and the imminent £7bn increase in costs from the Autumn Budget, and the new, poorly designed packaging levy arriving on the doorsteps of retailers. We expect food prices to be up by over 4% by the second half of the year.
She continued: “If Government wants to keep inflation at bay, enable retailers to focus on growth, and help households, it must mitigate the swathe of costs facing the industry. It can start by ensuring no shop ends up paying more than they already do under the new business rates proposals and delaying the new packaging taxes.”
Top: The British Retail Consortium (BRC) expects food prices to be up by over 4% by the second half of the year. This will reduce the spend on non-essential items.
