Shop price annual inflation is at lowest level since December 2021, easing from 1.3% in March to 0.8% in April, according to the latest BRC-NIQ Shop Price Index.
The figure sits below the three-month average rate of 1.5% and was mostly driven by Non-Food’s entry into deflation (-0.6% in April, down from 0.2% in March). The three-month average rate is 0.3% and Non-Food inflation is its lowest since October 2021.
Food inflation slowed to 3.4% in April, down from 3.7% in March. This is below the three-month average rate of 4.0% and is the 12th consecutive deceleration in the Food category, as well as the lowest rate since March 2022.
British Retail Consortium boss Helen Dickinson commented: “One year on from the peak, shop price inflation levels are showing signs of normalising, providing relief to households. Both food and non-food have seen shop inflation rates ease to more manageable levels. Food inflation slowed for the 12th consecutive month, as fresh products such as butter, fish and fruits, continued to fall in price due to easing input costs and intense competition between grocers.
“Geopolitical tensions and the knock-on impact on commodity prices, like oil, pose a threat to future price stability. Retailers will continue to do all they can to keep prices down, but government has a role to play with pro-growth policies that allow businesses to invest in the customer offer.”
