Shop price inflation eased in April, driven by widespread discounting from retailers, though experts warn the full impact of the Middle East conflict is yet to be felt by consumers.
Overall shop prices rose by 1 per cent compared to April last year, a decrease from 1.2 per cent in March and below the three-month average of 1.1 per cent, according to data from the British Retail Consortium (BRC) and NIQ.
Non-food items saw a slight deflation, becoming 0.1 per cent cheaper year-on-year, a shift from the 0.1 per cent growth recorded in March.
Meanwhile, food inflation also saw a dip, falling to 3.1 per cent from 3.4 per cent in March, although fresh food prices remain 3.9 per cent higher than the previous April.
BRC chief executive Helen Dickinson said: “Bigger discounts in clothing, furniture and DIY goods helped pull down shop price inflation in April.
“With weakening consumer confidence, retailers competed harder on price to stimulate more spring spending.
“Food price inflation also slowed as retailers offered discounts on Easter items such as chocolate.
“While we’re yet to see the full force of the Middle East conflict feeding into consumer prices, it will not be long before it begins to.”
Mike Watkins, head of retailer and business insight at NIQ, said: “Increased fuel prices are already leading to higher inflation and we can expect a similar impact in the food and non-food supply chains in the months to come.
“However, retailers will look to hold back any price increases as long as possible as alongside fragile consumer confidence, accelerating inflation is likely to negatively affect consumer spending.”
Research by the Resolution Foundation has found that the average household will be £480 worse off this year due to increased energy costs.
Chancellor Rachel Reeves recently said the Iran crisis was “not our war, but it is pushing up bills for families and businesses”.
She continued: “That’s why it’s my number one priority to keep costs down. Our economic plan is the right one and has put us in a stronger position to support families in the face of this new crisis.”
