Retail prices fall in April

Shop prices decreased by 0.02 per cent in April, compared with March, according to the latest figures from the British Retail Consortium (BRC).

In March, rises in non-food pricing offset the fall in food prices. Last month, the situation was reversed with non-food prices falling for the first time since January, by 0.56 per cent month on month. Overall, shop prices were still 0.47 per cent higher than at this time last year however.

BRC director-general Kevin Hawkins said that the early Easter meant that food discounting had eased during April. The poor harvest last year is also driving bread and cereal prices up. He said: 'Overall, price inflation is still very low and the current intensity of competition will keep it there, though this appears to be having little effect on consumer confidence.'