UK shop prices drop again ahead of BoE meeting

Published: May 02, 2018 12:43:54 | Updated: May 02, 2018 16:05:41

British shop prices slipped again in April, according to a survey on Wednesday that suggested inflation pressures remain in check ahead of a Bank of England interest rate decision next week.

Overall shop prices fell 1.0 per cent year-on-year in April, matching March’s pace of decline, which had been the fastest in more than a year, the British Retail Consortium (BRC) said.

Ongoing signs of muted cost pressures will be of interest to Bank of England officials, who are sizing up the outlook for inflation ahead of their policy decision due next Thursday.

However, the figure masked a widening gap between rising prices for food and falling prices for other goods, reports Reuters.

Official data last month showed British inflation unexpectedly cooled to a one-year low of 2.5 per cent in March.

BoE Governor Mark Carney later highlighted “mixed” economic data, causing many investors to shelve their bets for an interest rate increase this month.

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