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Shop price inflation dipped in April, driven by aggressive discounting from retailers amid warnings that Brits are yet to feel the “full force” of the Middle East conflict on their bills.
Overall shop prices are now 1% higher than a year ago, down from 1.2% in March and below the three-month average of 1.1%, according to figures from the British Retail Consortium (BRC) and NIQ. Non-food prices are 0.1% lower than the same period last year, reversing the 0.1% growth recorded in March.
Food price inflation also eased from March’s 3.4% to 3.1%, while fresh food prices remain 3.9% higher than last April.
BRC chief executive Helen Dickinson said: “Bigger discounts in clothing, furniture and DIY goods helped pull down shop price inflation in April.
“With weakening consumer confidence, retailers competed harder on price to stimulate more spring spending.
“Food price inflation also slowed as retailers offered discounts on Easter items such as chocolate.
“While we’re yet to see the full force of the Middle East conflict feeding into consumer prices, it will not be long before it begins to.”
Mike Watkins, head of retailer and business insight at NIQ, said: “Increased fuel prices are already leading to higher inflation, and we can expect a similar impact in the food and non-food supply chains in the months to come.
“However, retailers will look to hold back any price increases as long as possible as alongside fragile consumer confidence, accelerating inflation is likely to negatively affect consumer spending.”
