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UK shop price inflation eases to lowest rate since December 2021
02 April 2024

Shop price inflation eased to its lowest rate since December 2021 last month as retailers continued to bring prices down for customers.

Shop price annual inflation eased to 1.3% in March, down from February’s 2.5% and well below the three-month average of 2.2%, according to the British Retail Consortium (BRC)-NielsenIQ Shop Price Index.

Food inflation decelerated to 3.7% in March, down from 5% in February, the 10th consecutive month of slowing inflation for the category and its lowest since April 2022.

Meanwhile, inflation on products other than food dropped to 0.2% in March, down from 1.3% in February, and its lowest since January 2022.

Helen Dickinson, CEO of the British Retail Consortium, said: "Shop price inflation eased to the lowest level since December 2021 last month as retailers continued to compete fiercely to bring prices down for their customers.

"In non-food, prices of electricals, clothing and footwear fell as retailers increased promotions to entice consumer spending."

"While these figures are good news for consumers, from this month, retailers face significant increased cost pressures that could put progress on bringing down inflation at risk.

"These costs include a 6.7% business rates rise, ill-thought-out recycling proposals, and new border checks – all at the same time as the largest rise to the National Living Wage on record.

"The industry needs pro-growth government policy that supports investment and helps keep down prices for households up and down the country."

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