Shop price inflation slowed to 1.0 per cent year on year in April, down from 1.2 per cent in March, as retailers stepped up promotional activity to stimulate spending amid fragile consumer confidence, according to the British Retail Consortium (BRC).
The latest data, covering 1–7 April 2026, showed inflation falling below the three-month average of 1.1 per cent, driven largely by price cuts across non-food categories. Non-food inflation slipped into deflation at -0.1 per cent, compared with 0.1 per cent growth in March, as retailers increased discounts on big-ticket items such as clothing, furniture and DIY.
Food inflation also continued to ease, dropping to 3.1 per cent year on year from 3.4 per cent the previous month. Within this, fresh food inflation fell more sharply to 3.9 per cent from 4.4 per cent, while ambient food inflation edged up slightly to 2.1 per cent, in line with the three-month average.
Helen Dickinson, chief executive of the BRC, said heavier discounting played a key role in keeping prices in check.
“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,” she noted.
However, Dickinson warned that further pressures are building in the system. She pointed to rising global costs linked to fuel, fertiliser and commodities, alongside ongoing geopolitical tensions, as factors likely to push prices higher in the coming months.
“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. 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,” she said, calling for government action to address non-commodity costs within energy bills, arguing that this could help limit future price rises and ease pressure on household budgets.
Mike Watkins, head of retailer and business insight at NIQ, said rising fuel prices are already feeding into inflation and are expected to impact both food and non-food supply chains.
“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,” he noted.