Retail price inflation declines to lowest point since December 2021

Shop Price annual inflation eased to 1.3 percent in March, down from 2.5 percent in February, new data shows. This is below the 3-month average rate of 2.2 percent. Shop price annual growth is its lowest since December 2021, according to research released by BRC-NielsenIQ.

Commenting on the data, Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Shop price inflation eased to the lowest level since December 2021 last month as retailers continued to compete fiercely to bring prices down for their customers. In non-food, prices of electricals, clothing and footwear fell as retailers increased promotions to entice consumer spending.

“While these figures are good news for consumers, from this month, retailers face significant increased cost pressures that could put progress on bringing down inflation at risk. These costs include a 6.7 percent business rates rise, ill-thought-out recycling proposals, and new border checks – all at the same time as the largest rise to the National Living Wage on record. The industry needs pro-growth government policy that supports investment and helps keep down prices for households up and down the country.”

High inflation

Inflationary environments may prompt consumers to prioritise essential purchases over discretionary spending, leading to shifts in consumer preferences away from fashion retail towards other sectors. High shop price inflation could also lead to decreased consumer spending on fashion items as prices rise, impacting overall sales in the industry.