UK shop price inflation continued to be UK shop price deflation in March, which is good news for consumers at least in the month before many of their must-pay bills (such as energy, council tax and more) rise sharply.
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And as well as overall deflation, the latest figures from the BRC-NIQ Shop Price Index showed the clothing and footwear category in double-digit deflation “as a result of weak consumer demand”.
Overall shop price deflation was 0.4% year on year in March, although prices weren’t falling as sharply as they did in February (0.7%) or across the first three months of the year combined (0.6%).
Looking specifically at non-food, deflation was 1.9%, compared to 2.1% in February.
The price declines in non-food — and fashion specifically — helped to counter price rises in food, which grew 2.4%, higher than the 2.1% in February.
BRC chief executive Helen Dickinson said retailers were continuing “to do all they can to protect customers from the cost pressures bearing down on the industry. Prices fell for most non-food categories, which kept year-on-year overall shop prices in deflation, but at a reduced rate compared to February.
“With retailers bracing for significant extra costs which kick in later this week as a result of the Budget, inflation will likely accelerate in the coming months.”
And Mike Watkins, head of retailer and business insight at NielsenIQ, added: “There is competition on the high street as retailers look to pull in reluctant shoppers with seasonal promotions. However, with upwards pressure on prices, retailers may also need some focused price cuts to help footfall in the run up to the late Easter.”
