Proactive Investors - UK inflation eased to the lowest levels of price rises in almost two and a half years, according to research from the British Retail Consortium and NielsenIQ.
Annual shop price inflation was 0.8% in April, down from 1.3% in March, the BRC found, with most notable falls due to promotions on clothing and footwear, and fresh food products.
Non-food price inflation even turned negative, with deflation of 0.6% in the month, down from 0.2% and the lowest since October 2021.
Food inflation softened to 3.4% from 3.7% in the 12th consecutive month of deceleration to the lowest since March 2022.
“One year on from the peak, shop price inflation levels are showing signs of normalising, providing relief to households. Both food and non-food have seen shop inflation rates ease to more manageable levels," said BRC chief executive Helen Dickinson.
She said non-food prices fell into deflationary levels as retailers ramped up promotions to encourage consumer spend.
Food inflation slowed as fresh products such as butter, fish and fruits continued to fall in price due to easing input costs and intense competition between grocers.
“While consumers will welcome the lower shop price inflation, geopolitical tensions and the knock-on impact on commodity prices, like oil, pose a threat to future price stability," Dickinson said.
Mike Watkins, head of retailer and business insight at NielsenIQ, said: “Whilst topline retail growth has slowed since in recent weeks as food inflation has fallen, it is good news for shoppers that the cost of their grocery shop is starting to stabilise and that the prices of many non-food goods are now cheaper than a year ago.”