The pound was down in forex trading with the dollar to $1.600 this afternoon (January 9th) as food price inflation slows and shop price inflation steadies.
This is according to the British Retail Consortium (BRC) and Nielsen's most recent figures, which showed non-food prices were mostly flat in December after a 0.3 per cent slide the previous month.
Overall shop price inflation was unchanged at 1.5 per cent last month, while food inflation slipped to 4.1 per cent from 4.6 per cent in November.
BRC director-general Helen Dickinson explained that global commodity costs have softened in recent months, which is helping to dampen food inflation for consumers.
Senior manager of retail services at Nielsen Mike Watkins commented: "The good news is that across both food and non-food, shoppers took advantage of the many seasonal offers in December with retailers offering significant savings for the savvy shopper."
Ms Dickinson anticipates that grocery prices will stabilise in the short term and could even settle at lower levels in the second half of the year.
Find forex trading strategies and learn about the pound at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.