UBS On-Air: Paul Donovan Daily Audio 'Developing disinflation'

The UK British Retail Consortium’s shop price index exhibited more disinflation than had been expected, with prices rising 1.3% y/y. This measure does include the discounting applied to loyalty card holders in the two-tier pricing system (consumer price inflation excludes this), and retailers have been keen to shore up customer loyalty with selective discounts as resentment about profit-led inflation has increased.