UK shop price inflation eases to lowest rate since December 2021
Shop price inflation eased to its lowest level since December 2021, driven by falling food costs and supermarkets remaining competitive about price.
Shop price inflation fell to 1.3 per cent in March, down from 2.5 per cent in February, the British Retail Consortium said today. This was well below the three month average of 2.2 per cent, it added.
Food costs were 3.7 per cent higher than a year ago, down from five per cent in February, marking the 10th consecutive month of prices slowing and its lowest since April 2022.
Helen Dickinson, chief executive of the British Retail Consortium, said: “While Easter treats were more expensive than in previous years due to high global cocoa and sugar prices, retailers provided cracking deals on popular chocolates, which led to price falls compared to the previous month.
“Dairy prices also fell on the month as farmgate prices eased, and retailers worked hard to lower prices for many essentials. In non-food, prices of electricals, clothing and footwear fell as retailers increased promotions to entice consumer spending.”
UK grocers have been under fierce pressure to keep prices low in efforts to maintain their customer base – with the majority launching price matching deals and ramping up loyalty card offers.
Mike Watkins, head of retailer and business insight, NielsenIQ, which helped gather the data, added: “The slowdown in inflation continues and a key driver this month was a further fall in food prices. A year ago, food inflation was 15 per cent so this was to be expected.
“But it is also helped by intense competition amongst the supermarkets as they look to drive footfall, with focused price cuts and promotional offers earlier in the month for Mother’s Day and now again in the weeks leading up to Easter.”