While shop price growth remains near record highs, annual shop price inflation decelerated to 8.8% in April, down slightly from 8.9% in March, according to the latest BRC-NielsenIQ Shop Price Index.
Non-food inflation decelerated to 5.5%, down from 5.9% in March.
Helen Dickinson, OBE, chief executive of the British Retail Consortium (BRC), says: “Overall shop price inflation eased slightly in April due to heavy spring discounting in clothing, footwear, and furniture. However, food prices remained elevated given ongoing cost pressures throughout supply chain.
“We should start to see food prices come down in the coming months as the cut to wholesale prices and other cost pressures filter through. In the meantime, retailers remain committed to helping their customers and keeping prices as low as possible."
Mike Watkins, head of retailer and business insight, NielsenIQ, adds: “In recent weeks, more retailers have used loyalty schemes or money-off promotions to help stimulate sales. However, with inflation yet to peak and sales volumes in decline in many channels, it’s difficult to second guess the strength of consumer confidence. Given the falls in disposable income we really need to see CPI back into single figures and a slowdown in food inflation to test shoppers' willingness to spend."
