Prices of non-food items in UK supermarkets have fallen year on year for the first time since 2021, bringing overall shop inflation below 1 per cent, according to industry data released by the British Retail Consortium. This news comes as a relief to consumers grappling with higher living costs.
The BRC reported that annual shop price inflation dropped to 0.8 per cent this month from 1.3 per cent in March, marking the lowest rate since December 2021. Non-food items entered deflation at minus 0.6 per cent in April, attributed in part to retailers offering promotions. This decrease was a significant shift from a 0.2 per cent increase in March, marking the first negative reading since December 2021.
Helen Dickinson, BRC chief executive, stated that the latest figures suggest prices are “showing signs of normalizing, providing relief to households” amid the cost of living crisis. Both food and non-food items have seen shop inflation rates ease to more manageable levels, with notable decreases in clothing and footwear prices.
The BRC figures indicate that easing inflation continued in April beyond energy costs, including for food products that saw price surges following Russia’s invasion of Ukraine in 2022. Lower inflation, coupled with strong wage growth, is expected to support demand and boost consumer spending.
Mike Watkins, head of retailer and business insight at NielsenIQ, noted that the stabilization of grocery prices and cheaper non-food goods compared to a year ago is good news for shoppers. Retailers are continuing to promote discounts, providing further savings and driving overall demand.