Latest industry data shows that prices in UK stores have risen at their slowest rate since December 2021 as heavy discounts on clothing and footwear and easing food costs put the brake on inflation.
April’s BRC-NIQ Shop Price Index put annual inflation at just 0.8% in April, down from 1.3% in March.
Prices in the non-food stores fell 0.6% this month, down from 0.2% in the previous period, as retailers battled to offload early summer stock amid the cold and wet weather.
Meanwhile, food inflation decelerated to 3.4% in April, down from 3.7%. This is below the three-month average rate of 3.9% and the lowest since March 2022.
Helen Dickinson, the BRC chief executive, noted that shop price inflation levels were now showing signs of normalising a year on from the peak.
She added: “Both food and non-food have seen shop inflation rates ease to more manageable levels. In April, non-food prices fell, especially in clothing and footwear, where retailers ramped up promotions to encourage consumer spend.
“Food inflation slowed for the 12th consecutive month as fresh products, such as butter, fish and fruits, continued to fall in price due to easing input costs and intense competition between grocers.”
Amid fresh warnings that the recent unprecedented wet weather could lead to food shortages and higher prices, Dickinson noted that geopolitical tensions and the knock-on impact on commodity prices, like oil, posed a threat to future price stability.
She concluded: “Retailers will continue to do all they can to keep prices down, but government has a role to play with pro-growth policies that allow businesses to invest in the customer offer.”
