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Sharp UK shop price decline eases slightly in April - BRC

Published 06/05/2015, 00:13
Updated 06/05/2015, 00:22
© Reuters. A woman carries a shopping bag as she walks in central London

LONDON, May 6 (Reuters) - A sharp decline in British shop prices eased slightly last month, according to survey that suggests Britons' spending power is continuing to improve, a day before a closely fought national election.

The British Retail Consortium said retail prices in April were 1.9 percent lower than a year earlier, compared with the 2.1 percent fall in March which marked the largest decline in shop prices since the series started in December 2006.

Food prices dropped 0.9 percent, matching March's record decline.

"It's my hope that the next government notes today's figures as they're indicative of an important story from the last few years," said Helen Dickinson, BRC director general.

"Despite the low margins in a fiercely competitive market, retailers have kept prices down, and in doing so made sure the public are able to see their wages go that little bit further during a difficult period. That help is set to continue."

A nascent recovery in earnings and zero inflation have helped boost confidence among consumers, although that has not translated into a clear lead in opinion polls for Prime Minister David Cameron's Conservative Party ahead of Thursday's election.

© Reuters. A woman carries a shopping bag as she walks in central London

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