Retail Prices Show Steady Growth in Latest Industry Figures
The latest industry figures from the British Retail Consortium (BRC) and NielsenIQ show that shop prices are on the rise, but at the slowest pace in over two years. In fact, some prices are actually falling.
According to the BRC’s shop price index, which tracks the prices of goods in UK retailers, prices for non-food items fell by 0.6% in April compared to the previous year. This was due to increased promotions on items such as clothes and shoes. The trend continued from March, when prices had risen by 0.2% since February.
Food prices also saw a decrease in inflation, slowing to 3.4% in April. This marks the 12th consecutive drop in food inflation and the lowest level since March 2022. This is a significant decrease from the high of 15.7% in April 2023. The BRC attributed this decrease to competition among grocers and lower input costs, such as cheaper energy bills.
Overall shop price inflation also saw a decline, dropping to 0.8% in April from 1.3% in March. This is the lowest level since December 2021. However, it’s important to note that this data does not take into account inflation in other industries such as services or manufacturing.
Helen Dickinson, BRC Chief Executive, commented on the latest figures, saying, “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.” She also emphasized the role of government in implementing pro-growth policies that would allow businesses to invest in improving the customer experience.
Meanwhile, according to the Office for National Statistics (ONS), the official measure of inflation stood at 3.2% in March. This is the weakest level in two-and-a-half years, driven by falling food prices but offset by high energy costs due to tension in the Middle East and Ukrainian attacks on a Russian oil refinery.
The rise in prices can be traced back to the disruptions caused by COVID-19 lockdowns in 2020, which led to supply chain shortages. This was further compounded by Russia’s invasion of Ukraine, prompting western countries to reduce their reliance on Russian gas imports, which caused a rise in energy costs.
Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, commented on the latest figures, stating, “It is good news for shoppers that the cost of their grocery shop is starting to stabilise and that the prices of many non-food goods are now cheaper than a year ago.”
