UK shops heavily reduced prices to lure in shoppers amid Iran war
Store price inflation declined in April, driven by widespread discounts from retailers; But experts warn that the full impact of the conflict in the Middle East has not yet been felt by consumers.
According to data from the British Retail Consortium (BRC) and NIQ, general store prices increased by 1 per cent compared to April last year; This was down from 1.2 percent in March and below the three-month average of 1.1 percent.
Non-food items showed slight deflation and became 0.1 percent cheaper on an annual basis, following the 0.1 percent growth recorded in March.
Meanwhile, food inflation also declined, falling to 3.1 percent from 3.4 percent in March, but fresh food prices remained 3.9 percent higher than in the previous April.
BRC chief executive Helen Dickinson said: “Bigger discounts on clothing, furniture and DIY items helped reduce store price inflation in April.
“As consumer confidence weakened, retailers competed harder on price to further encourage spring spending.
“Food price inflation has also slowed as retailers offer discounts on Easter products such as chocolate.
“While we have not yet seen the full force of the conflict in the Middle East reflected in consumer prices, it will not be long before this begins.”
Mike Watkins, Head of Retail and Business Insight at NIQ, said: “Rising fuel prices are already leading to higher inflation and we can expect a similar impact on food and non-food supply chains in the coming months.
“However, retailers will seek to hold off price increases for as long as possible as fragile consumer confidence as well as accelerating inflation are likely to negatively impact consumer spending.”
The Solution Foundation’s research has found that the average household will be £480 worse off this year due to rising energy costs.
Chancellor Rachel Reeves recently said the Iran crisis “is not our war, it’s increasing the bills for families and businesses.”
He continued: “That’s why keeping costs low is my number one priority. Our economic plan is the right plan and puts us in a stronger position to support families through this new crisis.”
