Connect with us
DAPA Banner

Business

UK shop price inflation slows to 1.1% in February as retailers cut prices

Published

on

UK shop price inflation slows to 1.1% in February as retailers cut prices

Shop price inflation slowed more than expected in February, offering households tentative relief from cost-of-living pressures as retailers stepped up discounting and global food prices eased.

New data from the British Retail Consortium (BRC) and NielsenIQ showed shop prices rose 1.1 per cent year-on-year in February, down from 1.5 per cent in January. The deceleration reflects intensified competition across both food and non-food sectors, with retailers cutting prices to stimulate demand amid weak consumer confidence.

The figures come ahead of the spring statement, when the Office for Budget Responsibility is due to update its outlook on growth and public finances. They add to recent signs that inflationary pressures are moderating, after official data showed UK consumer price inflation fell sharply to 3 per cent in January, moving closer to the Bank of England’s 2 per cent target.

Food prices remain elevated but are increasing at a slower pace. Annual food inflation eased to 3.5 per cent in February from 3.9 per cent the previous month. Fresh food inflation edged lower, while ambient food inflation, covering products such as coffee, pasta, canned goods and other cupboard staples, fell to 2.3 per cent, its lowest level in four years.

The BRC said lower global commodity costs were filtering through supply chains, helping to stabilise grocery prices. However, it emphasised that competitive dynamics were playing a crucial role, particularly in discretionary categories such as fashion, health and beauty.

Advertisement

Prices for non-food items, including clothing, electronics and household goods, declined by 0.1 per cent year-on-year, compared with 0.3 per cent growth in January. Heavy promotional activity in fashion and personal care, coupled with softer demand due to unseasonal weather and fragile sentiment, contributed to the decline.

Helen Dickinson, chief executive of the BRC, described the slowdown as a “welcome relief” but warned that pressures had not disappeared. She noted that while the pace of price rises is moderating, many households continue to feel strain from higher cumulative costs over the past three years.

Mike Watkins, head of retailer and business insight at NielsenIQ, said pricing behaviour had shifted notably since the start of the year. “Competitive pricing across both food and non-food is helping to bring down inflation,” he said, though he cautioned that demand remains unpredictable as shoppers continue to prioritise essentials and trade down to value options.

The easing in shop price inflation follows a mixed economic backdrop. The government recently reported a record £30.4 billion budget surplus in January, driven by strong tax receipts and lower debt interest payments. Retail sales also surprised on the upside. However, unemployment has climbed to a five-year high and economic growth remains sluggish, tempering optimism.

Advertisement

Retailers have also flagged potential future cost pressures. The upcoming implementation of the Employment Rights Act and higher employment costs could increase operating expenses later this year. Industry leaders warn that if secondary legislation raises labour or compliance costs significantly, businesses may be forced to pass some of those increases on to consumers.

For now, the slowdown in shop price inflation suggests that competitive retail markets and easing global input costs are helping to cushion households. Whether that trend continues will depend on energy prices, wage dynamics and the broader economic outlook in the months ahead.


Jamie Young

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.

Advertisement

Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Business

China food delivery stocks subdued as authorities crack down on ‘ghost deliveries’

Published

on


China food delivery stocks subdued as authorities crack down on ‘ghost deliveries’

Continue Reading

Business

Big update on plans for new Blackpool sports village

Published

on

Business Live

Scheme largely funded by £6.5m from the UK Government’s Town Deal

The plans for the Revoe Community Sports Village project in Blackpool.

The plans for the Revoe Community Sports Village project in Blackpool(Image: Local Democracy Reporting Service)

A multi-million pound community sports village for Blackpool has taken a major step forward as new details on the project emerge.

Advertisement

A planning application for the Revoe Community Sports Village project, which is primarily funded by £6.5 million from the UK Government’s Town Deal, was last week submitted to Blackpool Council, which is working with Blackpool FC and Blackpool FC Community Trust.

The scheme includes the provision of two 7- a-side synthetic 3G football pitches, two padel courts and a Multi-Use Games Area (MUGA) and associated floodlighting.

A 3G (third-generation) football pitch is a modern, high-performance synthetic turf surface designed to replicate natural grass, featuring long fibers (40mm-60mm) infilled with sand and rubber crumb. They offer durable, all-weather play for training and competitive matches.

In addition, the plans also include proposed enclosures and boundary treatments, hard and soft landscaping, car parking and installation of two storage containers and associated works .

Advertisement

A Planning, Design and Access Statement in support of the project stated: “This project will support sport and community provision by creating new facilities adjacent to Blackpool Football Club’s Bloomfield Road stadium.

“The Council is working alongside Blackpool Football Club and the BFC Community Trust to implement and subsequently operate the development.”

It concludes: “The proposals are considered to represent appropriate development which supports the overall aims of the Local Authority in improving access to sports facilities to support the health and wellbeing of the local community.

“For these reasons, it is considered that full planning permission for the proposed development should be granted. “

Advertisement

What does the scheme offer?

The statement says: “All of the pitches would have associated floodlighting and two storage containers to be installed on-site would allow for equipment storage.

“The 3G pitch is designed to be configured as either two 7-a-side or four 5-a-side pitches, to FA standards.

“Each pitch will be bound by 4.5m high weld mesh fencing with floodlighting provided.

“It is proposed that the facilities would be open between 9am and 9pm daily. This reflects the opening hours of other 3G pitch facilities in Blackpool. The pitches would not be in use when first team home games are being played to mitigate any potential impact on traffic.”

Advertisement

School use and possible tournaments

The BFCCT will manage the use of the facilities once operational. This will include facilities for educational provision and other sports programmes.

In respect of the 3G pitches, the Blackpool Football Club Ladies and Girls grassroots teams are expected to utilise the facilities as will the FA Girl’s Emerging Talent Centre, which is the Fylde Coast’s centre of excellence.

Bookable slots will be offered to local schools and junior grassroots football clubs, to utilise the space and hire facilities. The Community Trust will also be exploring options for developing some competitive opportunities, such as matches and tournaments.

What the council says

Cllr Mark Smith, Blackpool Council’s Cabinet Member for Built Environment and Economy, said the project was part of the council’s aim to improve the area around Central Drive with quality housing and green space.

Advertisement

He said: “While our housing projects are about providing better homes for people to live in, this (sports) project is about improving the healthy lifestyles of people who live centrally, by creating community sports facilities for everybody to enjoy.

“The project will also help the football club’s community trust to increase its offer to local people, while also facilitating improvements to the East Stand to make the area around the football stadium a nicer place to visit.”

To find all the planning applications, traffic diversions, road layout changes, alcohol licence applications and more in your community, visit the Public Notices Portal.

Advertisement
Continue Reading

Business

Global Wealth Research – April 2026

Published

on

Wall Street Brunch: Oil And Rates Will Still Dominate Sentiment (undefined:USO)

Satellite view of the Strait of Hormuz with white graphic lines representing global shipping lanes and maritime traffic between the Persian Gulf and Gulf of Oman. Strategic oil transport concept

Alones Creative/iStock via Getty Images

By Indrani De, CFA, PRM, Head of Global Investment Research FTSE Russell, David McNay, CFA, Director – Global Investment Research FTSE Russell, and Zhaoyi Yang, CFA, FRM, Sr Manager – Global Investment Research FTSE Russell

Continue Reading

Business

Cook government's pre-budget announcements keep coming

Published

on

Schools to get $2.1b in pre-budget splash

More than $2.1 billion has been committed to state school infrastructure funding ahead of the May budget.

Continue Reading

Business

Casely power bank recall reannounced after woman’s death and plane fire

Published

on

Casely power bank recall reannounced after woman's death and plane fire

A recall affecting more than 400,000 power banks has been reissued after federal regulators reported additional incidents, including a fatal fire and a separate onboard airplane fire.

About 429,000 Casely Power Banks 5000mAh portable MagSafe compatible wireless chargers are included in the recall announced last week due to fire and burn hazards, according to the U.S. Consumer Product Safety Commission (CPSC).

Advertisement

The recall was first announced in April 2025. At that time, Casely had received 51 consumer reports of the charger overheating, swelling or catching fire while being used to charge phones, causing six minor burn injuries.

MORE THAN 30K WIRELESS POWER BANKS RECALLED AFTER REPORTS OF FIRE, EXPLOSIONS

Casely Power Banks 5000mAh portable MagSafe wireless phone charger

About 429,000 Casely Power Banks 5000mAh portable MagSafe wireless phone chargers are impacted by the reannounced recall. (U.S. Consumer Product Safety Commission / Unknown)

Since that recall was regulators say 28 additional incidents have been reported, including the death of a 75-year-old woman from New Jersey.

In August 2024, the elderly woman was charging her cell phone with the power bank on her lap when it caught on fire and exploded. She suffered second- and third-degree burns and later died from her burn injuries.

Advertisement

In another incident, a 47-year-old woman in February was charging her cell phone with the power bank on a plane when it caught on fire and exploded, causing first-degree burns to the woman.

Recalled power bank

The recall was first announced in April 2025. (U.S. Consumer Product Safety Commission / Unknown)

The power banks affected by the recall have the model number “E33A” printed on the back and “Casely” engraved on the front right side.

The chargers were sold on Casely’s website, Amazon and other online retailers from March 2022 through September 2024 for between $30 and $70.

Consumers are urged to stop using the power banks immediately and contact Casely for a free replacement.

Advertisement

OVER 1.1M POWER BANKS RECALLED AFTER REPORTS OF FIRES, EXPLOSIONS

amazon packages at a warehouse in new jersey

The chargers were sold at the Casely website, Amazon and other online retailers from March 2022 through September 2024. (REUTERS/Eduardo Munoz / Reuters)

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The power banks should not be thrown away in the garbage since they pose a risk of fire, the commission warned. Consumers are instructed to contact local household hazardous waste collection centers for disposal guidance.

Advertisement
Continue Reading

Business

Asia stocks rise as tech gains offset US-Iran tensions; China keeps LPR steady

Published

on


Asia stocks rise as tech gains offset US-Iran tensions; China keeps LPR steady

Continue Reading

Business

Economic, Geopolitical, and Technological Pressures

Published

on

Steering Through 2026's Contrasting Fortunes

Southeast Asia faces a complex web of interconnected risks, from economic downturns and job scarcity to geopolitical rivalries and the disruptive force of AI. The region’s diverse economies, from wealthy Singapore to poorer Myanmar, experience these challenges unevenly, forcing nations to balance immediate stability with long-term strategic autonomy.

Key Details

  • Economic growth is uneven: While Singapore thrives, countries like Myanmar, Laos, and Brunei struggle with debt, inflation, and joblessness; even wealthy Singapore faces cost-of-living pressures.
  • Geopolitical tensions are acute: ASEAN nations, heavily reliant on China for trade, are squeezed by U.S. tariffs (e.g., 46% on Vietnamese exports) and legal uncertainty after the 2026 U.S. Supreme Court ruling, forcing ad-hoc bilateral deals.
  • AI adoption is accelerating but unequal: Major investments in Indonesia, Malaysia, and Vietnam contrast with low SME adoption (15% in Singapore); energy-intensive data centers risk massive emissions spikes (e.g., 7x in Malaysia by 2030).
  • Risks reinforce each other: Trade shocks fuel inflation and unemployment; AI gains may widen inequality; supply chain shifts expose cybersecurity gaps; domestic politics limit fiscal flexibility.

While AI adoption promises growth, uneven implementation, energy constraints, and workforce displacement could exacerbate inequalities. Governments and businesses must adopt integrated, adaptive strategies, acknowledging that economic, geopolitical, and technological pressures are converging, demanding a coordinated, forward-looking response to navigate this volatile landscape.

There is growth but it’s not reaching everyone

Economic growth is a case in point. In the survey, the top three perceived risks in the region are economic downturn, lack of jobs or economic opportunity and inflation, reflecting a shared anxiety about how individuals will experience growth. The signs of stress are already visible.

In Thailand, growth forecasts have been revised downward due to trade uncertainty and high household debt. Meanwhile, Brunei is still trying to reduce its reliance on oil and gas, and Lao PDR faces serious debt pressures that limit room to manoeuvre.

Advertisement

Meanwhile, ageing demographics in Malaysia and Viet Nam are outpacing economic development, a challenge requiring different investments in productivity and skills.

AI Surge in the Region Sparks Opportunities Amid Growing Divides

Southeast Asian executives rank the risks from artificial intelligence (AI) adversely at fourth regionally, compared to 10th globally. There is also relatively higher concern about online harms and the risks posed by frontier technologies more broadly.

AI-driven growth initiatives are gaining momentum across the region. For instance, Microsoft has unveiled significant cloud and AI investment programs in Indonesia and Malaysia.

Qualcomm has launched an AI research and development center in Viet Nam. Meanwhile, Singapore’s Green Data Centre Roadmap positions computing capacity as a strategic national infrastructure, akin to how previous generations prioritized highways and ports.

Advertisement

Source link

Continue Reading

Business

Factbox-From airlines to banks: Australian, New Zealand firms feel heat of Gulf crisis

Published

on

Factbox-From airlines to banks: Australian, New Zealand firms feel heat of Gulf crisis


Factbox-From airlines to banks: Australian, New Zealand firms feel heat of Gulf crisis

Continue Reading

Business

Austal delivers final guardian boat to Maldives

Published

on

Austal delivers final guardian boat to Maldives

WA shipbuilding giant Austal has officially concluded one of the largest naval programs in the state’s history, delivering the final Guardian-class patrol boat.

Continue Reading

Business

Exclusive-EU to push for jet fuel diversification as Iran war threatens supply

Published

on

Exclusive-EU to push for jet fuel diversification as Iran war threatens supply


Exclusive-EU to push for jet fuel diversification as Iran war threatens supply

Continue Reading

Trending

Copyright © 2025