Latest data from the BRC-Nielsen Shop Price Index shows inflation cooled in early April for the first time in six months as retailers increased the use of discounts to attract cautious shoppers.
Overall shop price inflation decelerated last month to 0.4% from 0.9% in March.
Non-Food prices in April were back in deflationary territory, decreasing by 0.6%, compared to March when they were flat.
Meanwhile, food inflation eased to 2.2%, down from 2.5% in March, as supermarkets continued to battle for shopper spend. Fresh food inflation fell from 1.9% to 1.5%, whilst ambient food inflation slowed from 3.4% to 3.2%.
Helen Dickinson, Chief Executive of the British Retail Consortium, suggested that squeezed consumers would be pleased to see a slowdown in the price growth across the retail market. She said: “This has been driven, in part, by the significant number of promotions that have taken place in April. There were more than double the number of product lines on discount this month compared to the previous, as retailers hope to recover ground after March’s disappointing sales figures.”
Dickinson added: “Intense competition may be benefiting consumers, but is cutting into the already slim margins of retailers. In order to be successful, retailers must invest in both their physical and digital offerings to ensure they can provide the customer experience consumers want.
“However, investment comes at a cost and unless the government acts to reform the broken business rates system we may find more store closures and job losses on the horizon.”
