Price rises in UK shops have slowed as retailers applied \u201cheavy discounting\u201d to their goods in an effort to entice shoppers amid weakening consumer confidence, the industry\u2019s trade group said.<\/p>\n
Shop price inflation rose by 1% year-on-year in April, a slowdown from 1.2% in March and below the three-month average of 1.1%, according to the British Retail Consortium (BRC).<\/p>\n
Retailers made discounts to clothing, furniture and DIY goods, the BRC said in its monthly survey of its members, compiled with NielsenIQ (NIQ).<\/p>\n
Inflation for non-food items decreased to -0.1% year-on-year in April, against growth of 0.1% in March. This is below the three-month average of 0%.<\/p>\n
Recent surveys have shown households are becoming more cautious around spending as they brace for a fresh cost of living shock<\/a> due to rising energy and food costs as a result of the Iran war.<\/p>\n At the weekend, the chief secretary to the prime minister, Darren Jones, warned that the UK faces higher prices for food and fuel for at least eight months <\/a>after the war in Iran ends.<\/p>\n UK inflation increased to 3.3% in March<\/a>, according to official figures released last week, up from 3% in February. A survey from the data company GfK showed UK consumer confidence slid in April<\/a> to its lowest level since October 2023.<\/p>\n Helen Dickinson, the chief executive of the BRC, said: \u201cWith weakening consumer confidence, retailers competed harder on price to stimulate more spring spending.\u201d<\/p>\n However, she added: \u201cWhile we\u2019re yet to see the full force of the Middle East conflict feeding into consumer prices, it will not be long before it begins to.\u201d<\/p>\n A separate survey of retailers by the Confederation of British Industry (CBI) found that sales volumes were \u201cbelow seasonal norms in April\u201d and are expected to also be poor in May.<\/p>\n The CBI survey said a net balance of 68% of retailers said volumes had fallen in the year to April, up from 52% in March, representing the lowest reading since the survey began in 1983.<\/p>\n Meanwhile, online retail sales volumes dropped at the fastest rate since January 2024, while wholesalers also reported falls.<\/p>\n Martin Sartorius, the lead economist at the CBI, said: \u201cRetail conditions deteriorated in April, with sales momentum weakening noticeably against a backdrop of fragile consumer confidence. Activity remained subdued in the wholesale sector, with firms reporting headwinds from high costs and muted demand.\u201d<\/p>\n The BRC said food price inflation fell to 3.1% year-on-year in April, from 3.4% in March, as retailers offered discounts on Easter items including chocolate. Price rises for fresh food slowed significantly to 3.9%, from 4.4% in March and below the three-month average of 4.2%.<\/p>\n