The association has said it hopes the recent figures from the BRC-Nielsen Shop Price Index will prompt an increase in consumer confidence.
The report shows the lowest price index levels in January 2024 since May 2022, and BIRA said the figures will help to boost more confidence in shopping on the high street.
BRC-Nielsen’s Shop Price Index also shows that annual inflation eased to 2.9% in January, down from 4.3% in December. Shop price annual growth is its lowest since May 2022.
Non-food inflation fell to 1.3% in January, down from 3.1% in December. This is below the three-month average rate of 2.4%. Inflation is its lowest since February 2022.
Andrew Goodacre, ceo of BIRA, commented: “After a blip in December, it is good to see inflation falling again. Given the low demand, it is no surprise to see non-food retailers needing to discount significantly. However, this means reduced margins at a time when the costs of running a business continue to rise.
“We hope that lower inflation results in a cut in interest rates to boost consumer confidence. We also hope that the Chancellor uses his spring budget to further improve consumer confidence and focus on economic growth.”
