INFLATION RATE IN UK SHOPS DROPS TO ITS LOWEST LEVEL SINCE 2021

Tue 02 April 2024:

The British Retail Consortium (BRC) said on Tuesday that annual inflation for store prices in the United Kingdom (UK) fell to 1.3 percent in March, the lowest figure in more than two years.

“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,” BRC’s Chief Executive Helen Dickinson said.

Non-food inflation fell to 0.2 percent in March, down from 1.3 percent in February, while food inflation slowed to 3.7 percent, down from five percent in February.

“The slowdown in inflation continues and a key driver this month was a further fall in food prices,” said Mike Watkins, head of retailer and business insight at consumer intelligence company NielsenIQ.

The increase in food prices has dropped for the 10th consecutive month and is currently at its lowest level since April 2022.

The drop in inflation in UK shops was helped by “intense competition amongst the supermarkets as they look to drive footfall, with focussed price cuts and promotional offers earlier in the month for Mother’s Day and now again in the weeks leading up to Easter,” Watkins added.

However, the BRC said that UK retailers will face significantly increased cost pressures from April, including a 6.7-percent increase in business rates as a result of recycling initiatives and new border checks due to Brexit.

“The industry needs pro-growth government policy that supports investment and helps keep down prices for households up and down the country,” Dickinson said.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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