Price rises in UK shops have slowed significantly as retailers resort to heavy discounts to attract cautious shoppers, new data reveals. The British Retail Consortium (BRC) reported that shop price inflation eased to 0.5% in April, down from 0.8% in March, marking the lowest rate since February 2022.
Non-Food Prices Fall for First Time in Over a Year
Non-food items saw prices fall by 0.2% year-on-year, the first decline since January 2023, as retailers slashed prices on clothing, footwear, and household goods. This contrasts with food inflation, which remained elevated at 1.5%, though down from 1.8% in March.
Retailers Compete for Spending
With consumer confidence still fragile, many retailers have launched aggressive discount campaigns to drive footfall. Major chains including Next, Marks & Spencer, and Tesco have offered significant reductions on selected lines, particularly in fashion and homeware.
Helen Dickinson, chief executive of the BRC, said: “Retailers are doing everything they can to keep prices low for customers, but the cost pressures they face from higher wages, business rates, and other regulatory costs are making this increasingly difficult.”
Impact on Consumer Behavior
Despite the discounts, spending remains subdued. Official data shows retail sales volumes fell 0.3% in March, with consumers prioritizing essentials over discretionary purchases. The BRC expects price competition to intensify in the coming months as retailers prepare for the summer season.
However, some analysts warn that heavy discounting could squeeze profit margins and lead to store closures, particularly among smaller retailers unable to absorb the costs.
The Bank of England is closely monitoring price trends as it considers future interest rate decisions. While slowing inflation may ease pressure on households, the central bank remains cautious about underlying price pressures in the services sector.
