UK shop price inflation in March fell to the lowest level since December 2021 as retailers battled to win shoppers, the latest BRC-NielsenIQ Shop Price Index found.
Driven by falling food costs and competition between retailers amid the cost-of-living crisis, the rate eased to 1.3% last month – down from 2.5% in February, and below the three-month average of 2.2%, the new figures showed.
Non-food inflation fell to 0.2% in March, a drop from 1.3% the preceding month while food inflation fell to 3.7% from 5%.
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BRC chief executive Helen Dickinson: 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.”
But she warned retailers faced significant pressures in the coming months, including rises in business rates and new border checks, which “could put progress on bringing down inflation at risk”.
NielsenIQ head of retailer insight Mike Watskins added that a key driver of easing inflation was weaker growth in food prices: “A year ago, food inflation was 15% so this was to be expected.”
“But it is also helped by intense competition among 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.”
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