BRC: UK inflation returns to ‘normal levels’

Inflation in the UK is finally taking a turn for the better, with a new report by the British Retail Consortium (BRC) showing that levels are returning to “normal” as food inflation begins to slow.

Shop price annual inflation for the period between May 1 and 7 eased to 0.6 percent, down from 0.8 percent in the month prior. This was also below the three month average rate of 0.9 percent, making the shop price annual growth rate the lowest since November 2021.

While food inflation decelerated to 3.2 percent, non-food remained in deflation at -0.8 percent, down from -0.6 percent in the preceding month.

In a release, BRC’s CEO, Helen Dickinson, noted that while retailers were playing a “key part” in lowering inflation, “future government policy must support this too”.

Dickinson continued: “As the cost burden of new policies rises - from business rates to packaging taxes – this affects not just the businesses, but their customers too.

“With an election in a matter of weeks, it is vital that parties detail their support for customers and retailers in their upcoming manifestos.”

The news comes as UK inflation as a whole fell to its lowest level in three years, with prices rising by 2.3 percent in the 12 months to April 2024, down from 3.2 percent in the 12 months to March.

Hours after the Office of National Statistics (ONS) reported this update, prime minister Rishi Sunak confirmed the date of the upcoming general election as July 4.