Bloomberg the Company & Products

Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

U.K. Shop-Price Inflation Quickens as BRC Notes Pound Weakness

April 3 (Bloomberg) -- U.K. shop-price inflation accelerated in March and the impact of the pound’s weakness on import prices is beginning to be felt, the British Retail Consortium said.

Retail prices rose 1.4 percent from a year earlier, compared with a 1.1 percent gain in February, the trade group said in a report in London today. Food-price inflation was unchanged at 3.5 percent, while non-food prices rose 0.2 percent, the first annual increase since December 2011.

With demand muted, the BRC said upward pressure isn’t coming from consumers and it noted the pound’s depreciation this year. The Bank of England has also raised concerns about the currency’s weakness and its impact on inflation.

“If the downward trend in sterling persists, the full inflationary impact will still take time to filter through to prices as retailers use hedging strategies and long-term contracts to limit the impact of price shocks in consumer markets,” the BRC said. “However, the impact of a 5 percent decline since the start of the year is beginning to show.”

Sterling has weakened about 4.5 percent versus the euro this year and is the second-worst performer after the yen in 2013, based on Bloomberg Correlation-Weighted Indices.

Overall prices rose 0.4 percent in March from February, while food prices increased 0.6 percent, according to the BRC. The group said that “prolonged unseasonably cold and wet weather” may prompt price reductions in stores to boost demand.

“As discretionary spending for the next few months is expected to remain flat at best, what upward pressure there is on prices is not coming from the consumer at the moment,” said Mike Watkins, head of retail at Nielsen.

To contact the reporter on this story: Fergal O’Brien in London at

To contact the editor responsible for this story: Craig Stirling at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.