LONDON, March 31 (Reuters) - British store chains raised their prices a bit more quickly this month and the Iran war risks further pushing up inflation, a retail industry group said on Tuesday. Shop
UK Shop Price Inflation Increases Amid Rising Risks from Iran Conflict
Overview of Recent Shop Price Inflation Trends
LONDON, March 31 (Reuters) - British store chains raised their prices a bit more quickly this month and the Iran war risks further pushing up inflation, a retail industry group said on Tuesday.
Shop price inflation edged up to 1.2% in the 12 months to March, above the 1.1% increase in February but below its three-month average of 1.3%, the British Retail Consortium said.
Impact of Middle East Conflict on Inflation
"Higher costs resulting from the conflict in the Middle East are starting to feed into supply chains. While retailers will work with their suppliers to mitigate the impact on prices as far as possible, inflation will rise," BRC's Chief Executive Helen Dickinson said.
Survey Details and Market Context
Key Findings from the BRC Survey
- Food inflation: 3.4% in annual terms in March was down from 3.5% a month earlier as prices of dairy fell
- Non-food items: Prices rose by 0.1% after falling by 0.1% in the 12 months to February
- Regulatory factors: New labour market and healthy foods laws could also increase retailers' costs and push up inflation, the BRC said
Bank of England's Response
Focus on Food Prices and Public Expectations
- The Bank of England is keeping a close eye on food prices as it believes they influence public inflation expectations, which rose to their highest since 2023 in March
Survey Timing and Geopolitical Context
- The BRC survey was conducted between March 1 and March 7, shortly after the U.S.-Israeli attacks on Iran started
(Reporting by Suban Abdulla Editing by William Schomberg)
