Blog: Retailers escape budget blitz
Leonie Barrie | 18 March 2004
UK retailers can breathe a sigh of relief that there wasn't anything in yesterday's budget that's likely to impact on their businesses by taking money out of the economy. Although we're in a typically quiet period post-Christmas and pre-Easter just now, things should start to pick up as the Easter period approaches the pundits say.
But Paul Clarke, national director, Retail & Wholesale Sectors at Barclays, warns that price deflation probably can't continue for much longer. "Over the past 15 months we have seen a continuous weakening of the dollar. This has contributed substantially to the price deflation of goods that emanate from dollar based economies or those that price in dollars. If the dollar starts to stabilise or even strengthen we could begin to see substantial price pressures feeding through which are going to have to be absorbed by retailers (unlikely in the main) or passed on to consumers who have become used to ever cheaper prices."
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