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Price fall overshadowed by looming Brexit completion

EU Referendum – Signage And Symbols

Retail prices across the board have fallen, a figure which has been overshadowed by a looming Brexit completion date.

Shop prices fell by 1.6% in August compared to a decrease of 1.3% in July, a figure below the 12- and 6-month average price decreases of 1.0% and 1.5%, respectively.

This comes as non-food prices fell by 3.4% in August compared to a decline of 2.9% in July. This is below the 12-and 6-month average price declines of 2.4% and 3.3%.

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Commenting on the figures and how Brexit looms, Helen Dickinson, chief executive of the BRC, said: “Consumers will welcome another month of falling prices in shops. The faster rate of decline was driven by cheaper Non-Food goods, as many retailers have continued to run promotions and sales in order to entice customers to spend and make up for lost ground during lockdown.

“However, these lower prices are already under threat from increased costs associated with implementing coronavirus safety measures and are certain to rise if the UK ends the transition period without a trade deal with the EU.”

Adding: “The absence of a tariff-free deal will lead to higher prices for consumers as thin retail margins force retailers to raise prices in response to higher import costs. Furthermore, without a deal that reduces checks and red-tape, the UK supply chain faces severe disruption, reducing the availability of goods and further raising prices for consumers.

“It is essential that the Government ensures the British public are front of mind in their negotiations, otherwise it will be consumers, retailers and the UK economy that will suffer.”

Tags : brexitretail
Alex Douglas

The author Alex Douglas

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