SHOP price inflation has fallen to its lowest level in 18 months, as retailers offer large discounts to attract customers.
January’s prices were still 2.9 per cent higher than a year ago, according to the British Retail Consortium — but that’s considerably lower than December’s 4.3 per cent figure.
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Food inflation also slowed slightly but remained worryingly high at 6.1 per cent.
However, the BRC said there was “good news for the morning brew” as tea and milk prices fell.
Chief executive Helen Dickinson celebrated “some new year cheer” but warned that higher prices will not disappear any day soon.
She said: “Rising geopolitical tensions will add to uncertainty and costs in supply chains.”
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She noted that non-food goods had driven the fall in shop price inflation, with many retailers offering heavily discounted goods in their January sales.
Mike Watkins, at Nielseniq, echoed Ms Dickinson’s concerns.
He said: “Shoppers are seeing savings at the checkout, with non-food retailers offering promotions and food retailers reducing prices when the costs of goods fall.
“But consumer demand remains fragile as most households are yet to feel better off after nearly two years of inflation.”
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Fresh food inflation has slowed a little to 4.9 per cent — down from 5.4 per cent in December.
Last week the Co-op reduced prices on 117 everyday products for members, on top of the discounted member prices it already offers on 175 essential products.
And Sainsbury’s has increased its Aldi Price Match campaign to include 550 products.
Barbie whirl
THE Barbie movie has helped UK cinema revenues top £1billion for the first time since the pandemic.
And the plastic pink family favourite — released at the same time as nuclear bomb origin story Oppenheimer — was the past year’s most downloaded film.
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It came as the UK screen industry grew 5.6 per cent to £12.5billion in 2023 on the back of the rising uptake in subscription services.
The British Association for Screen Entertainment said 19.3million UK Homes — more than two-thirds — had used a subscription video service in the last three months, boosting figures by half a million.
Telecom firms need trainees
TWO of Britain’s biggest telecoms groups are recruiting apprentices.
The BT Group is offering more than 500 youngsters roles in software engineering, customer service, applied research, data analytics and cybersecurity.
And Virgin Media O2 is creating 200 apprenticeship and intern positions in field engineering and finance for people with no prior work experience or CVs.
The company’s Karen Handley said: “It’s wrong that many talented young people are being overlooked for entry-level roles because they don’t have prior experience.”
Glasses sees fall
SHARES in Aim-listed eyewear maker Inspecs fell 31 per cent yesterday after it said profits will be less than expected.
The Barbour and O’Neill-branded eyewear maker said 2023 profits would be up 16 per cent at £18million, but that is much lower than the market had hoped for.
Richard Peck, boss of the Bath-based business, said: “Our focus on operational efficiencies in 2024 delivered an improvement in our margins.”
Signs of hope for Superdry
SHARES in struggling fashion brand Superdry climbed 7 per cent after it had confirmed it is considering various “cost-saving options”.
Last week the chain revealed a sharp slump in sales and warned shareholders that its fortunes could still take some time to turn around.
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It said half-year losses nearly doubled to £25.3million.
The news alarmed the stock market but yesterday traders were reassured by news that the company was taking action to try and reverse its woes.
Cost-saving measures could include possible store closures and job cuts.
It has already shut 12 stores, saving around £20million, leaving it with 216 owned stores, plus franchised shops.
The firm said it is on track to save £40million this year.
Superdry said: “The company confirms it is working with advisers to explore the feasibility of various material cost-saving options.”
Ryanair’s slide
RYANAIR’S profits have fallen due to surging fuel costs.
The budget airline said they slumped to £12.8million for the third quarter of the year, from £180million last year.
Revenues climbed 17 per cent, but profits were hit because fuel soared 35 per cent.
The firm said it was also forced to slash prices in December to offset the move by some online travel agents to take Ryanair off their sites.
Boss Michael O’Leary said full year results were “heavily dependent upon avoiding unforeseen adverse events”.
Construction criticisms
BRITAIN’S construction sector is facing an “immensely difficult period” after 4,370 companies went bust in the year to November.
According to auditors Mazars, it is the highest number of bankruptcies of any industry in the UK for the past three years.
Flutter U.S bet
BRITISH gambling giant Flutter looks set to move its stock market listing across to New York.
After listing its shares on the New York exchange for the first time yesterday it said it will ask shareholders to approve a move of the primary listing to the US.
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The Paddy Power and Betfair owner hopes it will encourage interest from US investors.
If approved, the firm, who also own US site Fanduel, would keep a secondary listing in London so shares could still be traded here.
