Source: Sharecast
According to the latest BRC-NIQ shop price monitor, inflation was 1% in April, down from March’s 1.2% rate and below the three-month average of 1.1%. Within that, food prices rose 3.1% - compared to the 3.4% uplift seen a month earlier - but non-food inflation fell 0.1%, reversing March’s 0.1% print.
Helen Dickinson, chief executive of the British Retail Consortium, attributed the slowing rate of shop price inflation to increased discounting across clothing, furniture and DIY goods.
She continued: "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’ve 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."
Global energy prices have soared since the US first attacked Iran at the end of February, reigniting inflation fears and dashing hopes for further cuts to interest rates. Data published last week showed UK inflation had risen to 3.3% in the 12 months to March, after food prices increased 3.7% and motor fuel prices spiked 4.9%, reversing February’s 4.6%. It was the largest increase in motor fuel prices for more than three years.