The British Independent Retailers Association has reviewed recent figures from the BRC-Nielsen Shop Price Index and says it is hopeful costs have now peaked.
The report shows that shop price inflation has decreased to 8.8% in the first week of April, dropping from 8.9% in March. However this has exceeded the three-month average of 8.7%.
Non-food inflation decelerated in April to 5.5%, down from 5.9% in March, which is below the three-month average of 5.6%. Inflation remains elevated in this category.
Andrew Goodacre, ceo of BIRA, commented: “It was good to see shop price inflation and non-food inflation decelerate and hopefully this will continue for the remainder of the year. However, seeing food inflation rise again is a real concern.
“The cost of food is rising faster than ever and not only does this dampen consumer confidence, but it also means there is less money for the more discretionary consumer expenditure. We are promised lower food prices in the next few months and I would like to be reassured that there is no profiteering in the various supply chains.
“The fact inflation in non-food areas is decreasing does not automatically mean that consumer spending will increase. Retailers are having to accept lower margins (through sales promotions) to generate income but this is not sustainable for many. We really need to government to start focusing on a growth agenda to bring the economy to life.”
