Shop price inflation fell in April to reach its lowest level since December 2021 as food and non-food inflation reached manageable levels, providing relief to many households.
Annual shop price inflation eased to 0.8% in April, down from 1.3% in March and below the three-month average of 1.4%, according to the latest BRC-NielsenIQ Shop Price Index.
Food inflation slowed to 3.4% in April, down from 3.7% in March – the 12th consecutive month of deceleration.
This is below the three-month average of 3.9%. Food inflation is now at its lowest since March 2022.
Meanwhile, fresh food inflation fell to 2.4% in April from 2.6% in March, while ambient food decreased to 4.9% in April, down from 5.2% in March.
Non-food inflation reached its lowest level since October 2021 as it entered deflation at -0.6% in April, down from 0.2% in the previous month.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “One year on from the peak, shop price inflation levels are showing signs of normalising, providing relief to households.
“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.”
“While consumers will welcome the lower shop price inflation, geopolitical tensions and the knock-on impact on commodity prices, like oil, pose a threat to future price stability. 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.”
No comments yet