Burton Mills - UK Retailers Reduce Shop Prices
Burton Mills - As the pressure from high inflation begins to ease, UK retailers are reducing prices.
TAIPEI, Taiwan, April 9, 2018 (Newswire.com) - UK shop prices fell at their fastest pace in more than 12 months, last month. Burton Mills economists say this indicates that inflation pressure caused by the pound’s devaluation after the Brexit referendum in June 2016 could be starting to ease.
The British Retail Consortium stated that shop prices decreased 1.0 percent last month on an annual basis in what was the most rapid rate of deflation since February last year. Last month shop prices declined by 0.8 percent year on year.
Burton Mills economists say the UK economy performed poorly last year as elevated inflation caused by the significant drop in the pound after Britain voted to leave the European Union placed extreme pressure on domestic consumer spending.
Burton Mills economists say that, as the effect of the British currency’s devaluation begins to fade, shop owners are starting to relay the positive effect to the shop floor through lower prices.
The Bank of England’s policymakers will be paying close attention to these renewed signs of decreasing price pressures. Last month, Bank of England officials said that ongoing reining in of monetary policy would be required to return inflation to the central bank’s target range.
Last month, official data revealed that consumer prices increased at a yearly rate of 2.7 percent in February. Burton Mills analysts say that this figure was lower than was originally anticipated by investors.
However, Burton Mills analysts believe that the Bank of England is still on track to increase borrowing costs at its May policy meeting. This will be only the second increase in over a decade.
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Source: Burton Mills