Annual retail prices rose 1.2 per cent last month fuelled by a surge in year-on-year food prices of 4.7 per cent, up from annual inflation of 4.1 per cent the previous month, according to figures released by the British Retail Consortium (BRC) today.

By contrast, annual non-food prices fell 0.6 per cent last month, a further dip compared with annual deflation of 0.5 per cent in March.

The overall year-on-year Shop Price Index rose 1.2 per cent in April, up 0.1 per cent on the previous month.

The BRC said that it has been evident over the past quarter that electricals, clothing and footwear are the drivers of deflation.

In April, the electricals sector reported deflation of 4.8 per cent and for clothing and footwear this figure was 2.4 per cent.

Non-food deflation has been relatively steady over the past 12 months, ranging from 0.2 per cent to 1.2 per cent, whereas food inflation has been more volatile at 2.1 per cent to 4.7 per cent.

BRC director-general Stephen Robertson added: “Non-food prices are down on a year ago and they’re falling faster than at any time since September.

“Food prices have gone up, but the retail price of food is rising much more slowly than the farm-gate price of commodities such as wheat and milk. There is no doubt that food prices would be much higher if it wasn’t for retailers’ efforts to contain them.”

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