MNI BRIEF: UK Shop Price Inflation Slows In February - BRC

UK shop price inflation slowed to 1.1% in February, down from 1.5% in January, the British Retail Consortium said on Tuesday.

Food inflation also decelerated, slowing to 3.5% year-on-year against 3.9% in January. Fresh food inflation stood at 4.3% vs 4.4%.

Slowing shop prices are in line with Bank of England expectations of overall headline inflation returning to the 2% target early in Q2, perhaps giving the BOE room to cut rates further from the current 3.75%. (see MNI INTERVIEW: BOE Needs Clearer Inflation Picture Before Cuts )

Source: British Retail Consortium