U.K. March BRC shop prices rose 0.4% m/m and annual price growth accelerated to 2.0% from 1.9% in February. Rising food prices continue to underpin the headline reading and food prices remained 9.0% higher y/y in March, same as in February, while non-food inflation was down 1.5% y/y after a 1.7% y.y decline in February. Data hence highlight that some stickiness remains for U.K. prices, with rising import prices likely pushing food prices higher. Note that the BRC measure differs from the RPI indicator in that the former is more retail focused, excluding items which can not be bought in retail outlets, such as petrol, telephone charges, council tax and restaurant meals
