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UBS On-Air: Market Moves

UBS On-Air: Paul Donovan Daily Audio 'Disinflation forces show up, again'

5 min • 29 augusti 2023
The UK BRC shop price index showed further disinflation in August. The moderating inflation was led by food inflation slowing, which may not entirely translate into official consumer prices. The risk with profit-led inflation is that companies lose customer loyalty. As attacks on profit-led inflation have increased, UK supermarkets have responded with two-tier pricing offering discounts to customers with loyalty cards. Those discounts appear in the BRC data, but not in the official consumer price data.
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