BRC-NIQ SHOP PRICE INDEX – MAY 2025
Period Covered:
01 – 07 May
2025
- Shop price deflation was unchanged at 0.1% year on year in
May, against a decline of 0.1% in April. This is above the
3-month average of -0.2%.
- Non-Food deflation decreased to 1.5% year on year in May,
against a decline of 1.4% in April. This is above the 3-month
average of -1.6%.
- Food inflation increased to 2.8% year on year in May, against
growth of 2.6% in April. This is above the 3-month average of
2.6%.
- Fresh Food inflation increased to 2.4% year on year in May,
against growth of 1.8% in April. This is above the 3-month
average of 1.8%.
- Ambient Food inflation decreased to 3.3% year on year in May,
against growth of 3.7% in April. This is below the 3-month
average of 3.6%.
|
|
Overall SPI
|
Food
|
Non-Food
|
|
% Change
|
On last year
|
On last month
|
On last year
|
On last month
|
On last year
|
On last month
|
|
May-25
|
-0.1
|
0.2
|
2.8
|
0.4
|
-1.5
|
0.1
|
|
Apr-25
|
-0.1
|
0.0
|
2.6
|
0.7
|
-1.4
|
-0.4
|
Note: Month-on-month % change refers to changes in the
level of prices.
Helen Dickinson, Chief Executive of the BRC,
said:
“While overall shop prices remain unchanged in May, food
inflation rose for the fourth consecutive month. Fresh foods were
the main driver, and red meat eaters may have noticed their steak
got a little more expensive as wholesale beef prices increased.
Non-food prices remained in deflation, but this slowed in
categories such as fashion and furniture as retailers began to
unwind heavy promotional activity. Prices were falling faster for
electricals as retailers tried to encourage spending before any
potential knock-on impact from U.S. tariffs.”
“With retailers now absorbing the additional £5bn in costs from
April's increased Employer National Insurance contributions and
National Living Wage, it is no surprise that inflation is rearing
its head once again. Later this year, retailers face another £2bn
in costs from the new packaging tax, and there are further
employment costs on the horizon from the implementation of the
Employment Rights Bill. Government must ensure the Employment
Rights Bill is fit for purpose, supporting workers' rights while
protecting jobs and investment for growth. If statutory costs
continue to rise for retailers, households will have to brace
themselves for more difficult times ahead as prices rise faster.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“Whilst shoppers are seeing savings
at the checkout as retailers increase promotional activity,
increasing prices is still an extra challenge to consumer
spending alongside rising household bills. And if consumer
confidence remain weak as looks likely, then retailers may have
to work harder to encourage shoppers to spend over the summer.”
