Shop price inflation in the UK slowed to 1% year-on-year in April, down from 1.2% in March, according to the British Retail Consortium (BRC). The easing came as retailers applied heavy discounts on clothing, furniture, and DIY goods to attract cautious shoppers.
Non-food prices fell by 0.1% on an annual basis, reversing 0.1% growth in March. Food inflation also moderated, dropping to 3.1% from 3.4%, with discounts on Easter items such as chocolate. Fresh food price rises slowed to 3.9% from 4.4%.
The BRC warned that the slowdown may be temporary, as the impact of the Iran war and rising energy costs begins to feed through. Chief executive Helen Dickinson said retailers were competing harder on price due to weakening consumer confidence, but noted that the full force of the Middle East conflict had yet to hit prices.
A separate survey from the Confederation of British Industry (CBI) found retail sales volumes fell at the sharpest rate since records began in 1983, with 68% of retailers reporting declines. Online sales also dropped at the fastest pace since January 2024.
Darren Jones, chief secretary to the prime minister, warned that higher food and fuel prices could persist for at least eight months after the Iran war ends. The BRC called on the government to curb non-commodity energy charges to help moderate inflation.
