Shop price inflation fell in April on the back of heavy discounting by retailers, amid warnings that consumers are yet to see the “full force” of the Middle East conflict feeding into prices.
Inflation Data Overview
According to the British Retail Consortium (BRC) and NIQ, shop prices overall are now 1% higher than last April, down from 1.2% in March and below the three-month average of 1.1%. Non-food prices are 0.1% cheaper year on year, compared to growth of 0.1% in March. Food inflation also eased, falling from March’s 3.4% to 3.1%, while fresh food prices are 3.9% higher than last April.
Retailer Strategies and Consumer Impact
BRC chief executive Helen Dickinson commented: “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.” She added: “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, noted: “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.”
