The British Retail Consortium (BRC) has revealed that inflation levels are slowing, as shop price inflation eased to its lowest since December 2021.
Food inflation fell to 3.4% in April, down from 3.7% in March. This was below the three month average rate of 3.9% and was the 12th consecutive deceleration in the food category, as inflation hit its lowest since March 2022.
Fresh food inflation slowed further in April, down from 2.6% in March to reach 2.4%. BRC said this was below the three month average rate of 2.7%.
Ambient food inflation decelerated to 4.9% following its 5.2% rate in March, reporting levels below the three month average rate of 5.6%.
Helen Dickinson, chief executive of the BRC, said: “One year on from the peak, shop price inflation levels are showing signs of normalising, providing relief to households. Both food and non-food have seen shop inflation rates ease to more manageable levels.
“Food inflation slowed for the 12th consecutive month, as fresh products such as butter, fish and fruits continued to fall in price due to easing input costs and intense competition between grocers.”
Dickinson continued: “While consumers will welcome the lower shop price inflation, geopolitical tensions and the knock-on impact on commodity prices, like oil, pose a threat to future price stability. Retailers will continue to do all they can to keep prices down, but Government has a role to play with pro-growth policies that allow businesses to invest in the customer offer.”
Mike Watkins, head of retailer and business insight at NielsenIQ, said: “Whilst topline retail growth has slowed since in recent weeks as food inflation has fallen, it is good news for shoppers that the cost of their grocery shop is starting to stabilise and that the prices of many non-food goods are now cheaper than a year ago.
“To help shoppers manage household budgets, retailers continue to promote and this provides further savings and we expect this to continue to help drive overall demand.”
