Overall shop prices in the UK during April dropped at their steepest rate in over three years as retailers struggled with the impact of the coronavirus outbreak.
The data from the BRC and Nielsen shows prices fell by 1.7% compared to a 0.8% decrease in March. The latest figure relates to the period between 1 – 7 April.
This was driven by a sharp decline in non-food prices, which fell by 3.7% in April compared to 1.9% last month. Clothing, footwear and furniture were hit hard by the outbreak as discretionary spending evaporated, resulting in deep price cuts.
Meanwhile, food inflation accelerated from 1.1% to 1.8% in April, the highest rate since June 2019. Ambient food inflation rose from 2% to 3% as retailers offered fewer promotions to discourage consumer stockpiling at the start of the crisis.
Helen Dickinson, Chief Executive of British Retail Consortium, commented: “Retailers who remain open face rising costs from implementing social distancing measures, protective equipment and rising import prices, yet they continue to deliver great value on their products.
“With the UK facing months of economic uncertainty and the prospect of rising job losses, many customers have cut right back on spending. A speedy economic recovery is key to rebuilding consumer confidence, but businesses cannot do it alone. The Government has demonstrated great support for the industry and they must be ready to take measures to revive consumer demand after lockdown has lifted.”
