Shop price inflation in the UK recorded a modest increase of 0.8% in April, marking the lowest rate since December 2021, as reported by the British Retail Consortium (BRC)-NielsenIQ Shop Price Index. This deceleration was observed across both food and non-food categories. Non-food products saw a decline of 0.6% in prices, primarily due to price cuts in clothing and footwear as a strategy by retailers to stimulate consumer spending. Similarly, food inflation slowed to 3.4%, the smallest rise since March 2022, with fresh food experiencing a notable slowdown to 2.4%.

Helen Dickinson, CEO of the BRC, pointed out challenges such as geopolitical tensions and commodity price volatility that could potentially influence price stability, underscoring the role of governmental support in mitigating these impacts. Mike Watkins, from NielsenIQ, remarked that the stabilization in grocery prices combined with lower non-food costs could benefit consumers, even though overall retail growth has seen a slowdown.

This trend of easing shop price inflation could potentially ease the budgeting pressures experienced by UK households, especially given the retail sector’s continued promotional activities aimed at boosting consumer engagement amidst ongoing economic uncertainties.