Overall shop price inflation in the UK eased to 1 per cent in April, down from 1.2 per cent in March, according to data from the British Retail Consortium (BRC) and NIQ. The slowdown was primarily driven by widespread discounting from retailers across various sectors, including clothing, furniture, DIY goods, and Easter food items.
Non-food and food price trends
Non-food items saw a slight deflation, becoming 0.1 per cent cheaper year-on-year. Meanwhile, food inflation dropped to 3.1 per cent, though fresh food prices remain 3.9 per cent higher than the previous year. The discounting efforts were aimed at attracting cautious consumers amid ongoing economic uncertainty.
Impact of global conflicts
Experts warn that the full impact of the Middle East conflict, particularly rising fuel prices, is yet to be felt and is expected to lead to higher inflation in supply chains. Despite retailers' efforts to absorb costs due to weak consumer confidence, the Resolution Foundation estimates that the average household will be £480 worse off this year due to increased energy expenses.
In full, UK shops heavily reduced prices to lure in shoppers amid the Iran war, but the relief may be temporary as global pressures mount.
