Belfast Telegraph

Sunday 21 December 2014

Shop prices fall in line with the cost of oil

The falling cost of crude oil and raw materials filtered through to shop prices last month, the British Retail Consortium (BRC) has said.

Overall shop price inflation slowed to 1.1% in June from 1.5% in May, its lowest level in two-and-a-half years, while food inflation fell to 3.5% from 4.3%.

The slump is caused by crude oil prices falling by a quarter on three months ago, and food commodities such as coffee and sugar also descending sharply.

In addition, weak demand and aggressive competition continues to drive retailers to put on discounts and special deals, further lowering the cost of goods.

Mike Watkins of Nielsen, a retail measurement company, said: "Prices continue to fall across retail stores which will be welcome news for the many households needing to make savings on bills and bigger-ticket items."

Food retailers have seen slow growth, but analysts expect a summer jam-packed with events should boost spending.

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Comment

More

Company Profiles

More

Help & Advice

More

People on the move

More