Heavy discounting eases shop prices
Period Covered: 01 – 07 April 2026
- Shop price inflation decreased to 1.0% year on year in April, against growth of 1.2% in March. This is below the 3-month average of 1.1%.
- Non-Food inflation decreased to -0.1% year on year in April, against growth of 0.1% in March. This is below the 3-month average of 0.0%.
- Food inflation decreased to 3.1% year on year in April, against growth of 3.4% in March. This is below the 3-month average of 3.3%.
- Fresh Food inflation decreased to 3.9% year on year in April, against growth of 4.4% in March. This is below the 3-month average of 4.2%.
- Ambient Food inflation increased to 2.1% year on year in April, against growth of 2.0% in March. This is in line with the 3-month average of 2.1%.
Note: Month-on-month % change refers to changes in the level of prices.
Helen Dickinson, chief executive of the BRC, said: “Bigger discounts in clothing, furniture and DIY goods helped pull down shop price inflation in April. With weakening consumer confidence, retailers competed harder on price to stimulate more spring spending. Food price inflation also slowed as retailers offered discounts on Easter items such as chocolate. While we’re yet to see the full force of the Middle East conflict feeding into consumer prices, it will not be long before it begins to.
“Retailers already face mounting cost pressures from domestic policies, with an extra £10bn a year added over the last two years from employment costs, packaging taxes and more. This will be compounded as rising fuel, fertiliser, and commodity prices begin to feed into business costs. Government can help moderate shop price inflation by fixing the non-commodity charges which inflate businesses energy bills. This could help mitigate the peak in food inflation, reducing the squeeze on struggling households who will ultimately bear the brunt.”
Mike Watkins, head of retailer and business insight, NIQ, said: “Increased fuel prices are already leading to higher inflation, and we can expect a similar impact in the food and non-food supply chains in the months to come. However, retailers will look to hold back any price increases as long as possible as alongside fragile consumer confidence, accelerating inflation is likely to negatively affect consumer spending.”