Essential reading for retailers and suppliers in the home improvement market

February shop price index shows fall

Published: 4 April 2007
DIY and Hardware index indicates prices 1.64% higher than in 2006
Inflation on the UK's high streets eased slightly in February from January, the British Retail Consortium said in its monthly shop price index.

The British Retail Consortium (BRC) said prices were 1.79% higher in February than the same period a year earlier, down from a 1.84% increase in January.

The BRC said the non-food index for March showed that prices were 0.70% lower than at the same time last year, showing deflation within non-food is continuing.

The fall of 0.70% in March is smaller than the 1.46% fall in February, due to a fall in the level of promotional activity in March.

On a month-on-month basis, non-food prices increased by 0.48% in March, the same as in February.

DIY and hardware

The DIY and Hardware index for March showed that prices were 1.64% higher than at the same time in 2006.

On a month-on-month basis, the index showed a rise of 0.08% in March, lower than the rise of 1.93% in February.

"The index has shown larger monthly variances than other categories, due to the fluctuating levels of promotional activity within the sector," the Consortium said. "Overall, the sector continues to be affected by price led competition to a greater extent than other sectors, mainly due to the poor climate for major purchases and the close link to the weakening housing market."


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