UK shop price inflation eased to 1.0% in April from 1.2% in March as Easter discounts helped retailers stimulate spending, though the BRC warned Middle East cost pressures are fast approaching.
UK shop price inflation eased to 1.0% in April from 1.2% in March as Easter discounts helped retailers stimulate spending, though the BRC warned Middle East cost pressures are fast approaching. Summary The British Retail Consortium said UK shop prices rose 1.0% year on year in April, down from 1.2% in March, as Easter promotions on chocolate, home renovation materials and clothing eased the monthly reading Food price inflation slowed to 3.1% from 3.4%, with retailers competing harder on price amid weakening consumer confidence Separate CBI data published Monday showed retailers reported the biggest fall in sales volumes in more than 40 years The BRC’s measure covers a narrower basket than official UK CPI, which stood at 3.3% in March; the IMF forecasts British inflation will reach 4% this year BRC chief executive Helen Dickinson warned the full force of the Middle East conflict has yet to feed into consumer prices but said it would not be long before it does NIQ analyst Mike Watkins cautioned that accelerating inflation is likely to weigh further on already fragile consumer spending Note: the Bank of England’s Monetary Policy Committee is meeting this week to set interest rates.
Most economists expect rates to be held for now, with the MPC monitoring the extent to which businesses are passing on higher costs. Governor Andrew Bailey said this month that businesses he had spoken to reported a lack of pricing power, offering some reassurance that inflation would not surge as it did in 2022 when it topped 11% UK shop price inflation eased slightly in April as Easter promotions across chocolate, home renovation products and clothing gave retailers a tool to stimulate spring spending, according to the British Retail Consortium’s monthly survey of major chains. The respite, however, is widely expected to be short-lived.
The BRC said prices in April were on average 1.0% higher than a year earlier, down from a 1.2% annual increase in March. Food price inflation also…