UK shop price inflation drops to 28-month low

29th Apr 2024 08:45

(Sharecast News) - Price increases at UK tills fell to their lowest since the end of 2021 in April, according to figures released on Tuesday by the British Retail Consortium and NielsenIQ, as food inflation eased for the 12th straight month.

The annual rate of shop price inflation fell to just 0.8% in April, down from 1.3% in March, the BRC-NeilsenIQ Shop Price Index showed.

This was well below the three-month average rate of 1.4% and the lowest year-on-year increase since December 2021.

Non-food prices were 0.6% lower than where they were last year, with annual deflation accelerating from -0.2% the previous month. This was the sharpest decline since October 2021.

Meanwhile, food price increases fell to 3.4% from 3.7%, falling to its lowest since March 2022. Fresh food inflation slowed to 2.4% from 2.6%, hitting its lowest since November 2021, while ambient food inflation fell to 4.9% from 5.2%, its lowest since June 2022.

"One year on from the peak, shop price inflation levels are showing signs of normalising, providing relief to households," said Helen Dickinson, the chief executive of the BRC.

"While consumers will welcome the lower shop price inflation, 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."