Falling food costs and competition between retailers helped ease UK shop price inflation in March to its lowest level since December 2021, figures show.
The British Retail Consortium (BRC)-NielsenIQ Shop Price Index found prices were 1.3 per cent higher than a year ago in March, slowing from February’s 2.5 per cent and well below the three-month average of 2.2 per cent.
Food prices have fallen for the 10th consecutive month and are now at their lowest point since April 2022, but were still 3.7 per cent higher than a year ago, down from 5 per cent in February.
Fresh food inflation slowed further to 2.6 per cent from 3.4 per cent a month earlier.
Inflation on products other than food fell to 0.2 per cent in March, down from 1.3 per cent in February – its lowest since January 2022.
“While Easter treats were more expensive than in previous years due to high global cocoa and sugar prices, retailers provided cracking deals on popular chocolates, which led to price falls compared to the previous month," BRC chief executive Helen Dickinson said.
“Dairy prices also fell on the month as farm gate prices eased, and retailers worked hard to lower prices for many essentials.
“In non-food, prices of electricals, clothing and footwear fell as retailers increased promotions to entice consumer spending.”
“The slowdown in inflation continues and a key driver this month was a further fall in food prices," Mike Watkins, head of retailer and business insight at NielsenIQ, said.
“A year ago, food inflation was 15 per cent 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.”
UK Chancellor says 'best tax cut right now is a cut in inflation' – video
UK Chancellor says 'best tax cut right now is a cut in inflation'
