Store price inflation slowed in April, driven by widespread discounting by retailers, although experts warn that consumers have not yet felt the full impact of the Middle East conflict.
Overall prices in stores rose 1 per cent compared to April last year, down 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 experienced slight deflation, falling 0.1 percent year-on-year, compared to 0.1 percent growth in March.
Meanwhile, food inflation also saw a decline, falling to 3.1 percent from 3.4 percent in March, although fresh food prices remain 3.9 percent higher than the previous April.
BRC chief executive Helen Dickinson said: “Bigger discounts on clothing, furniture and DIY items helped reduce shop price inflation in April.
“With consumer confidence weakening, retailers competed harder on prices to stimulate greater spring spending.
“Food price inflation also slowed as retailers offered discounts on Easter items such as chocolate.
“While we have not yet seen the full force of the Middle East conflict influencing consumer prices, it will not be long before it begins to do so.”
Mike Watkins, head of retail and business insight at NIQ, said: “Rising fuel prices are already driving higher inflation and we can expect a similar impact on food and non-food supply chains in the coming months.
“However, retailers will seek to curb any price increases for as long as possible as, coupled with fragile consumer confidence, accelerating inflation is likely to negatively impact consumer spending.”
Research by the Resolution Foundation has found that the average household will lose £480 this year due to rising energy costs.
Chancellor Rachel Reeves recently said that the Iran crisis “is not our war, but it is driving up bills for families and businesses.”
He continued: “That's why my number one priority is keeping 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.”
