The overall shop prices in the UK reported deflation for the twelfth consecutive month in April, decelerating to 1.4% from 1.7% in March.
The deceleration in the overall SPI figure has broken the four-month declining trend, according to the British Retail Consortium (BRC) & Nielsen shop price index.
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During the period, Food inflation slowed to 0.7%, as compared to 0.8% in March, the lowest ever recorded. Non-food reported annual decelerated deflation of 2.7% in April from 3.2% in March.
British Retail Consortium director general Helen Dickinson said in April, customers benefitted from prices and promotions in their local supermarket as they stocked up for the Easter holidays.
"Hard-pressed families mindful of budgets in the run up to Easter break have been helped by the lowest level of food inflation since BRC records began in December 2006. Customers benefitted from prices and promotions in their local supermarket as they stocked up for the Easter holidays.
"Retailers will continue to respond to cost conscious consumers by keeping prices down. We’ve also seen some excellent deals in clothing and footwear, electrical, furniture and flooring. After a rise at the beginning of the year a more positive outlook for commodity prices should mean prices remain stable in the coming months."
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By GlobalDataNielsen Retailer and Business Head Mike Watkins said over the last six months, shop prices fell while stabilising in recent weeks. As consumer confidence slowly improves, shoppers remain cautious.
"So retailers are holding back on price increases wherever possible. With the escalation of price cutting by the major Supermarkets impacting shopping baskets over the next few weeks, we can anticipate any external pressures on food inflation to be held in check for the time being," Watkins added.
