LONDON (dpa-AFX) - UK shop price inflation softened in April, driven primarily by increased discounting across clothing, furniture and DIY goods, the British Retail Consortium reported Tuesday.
The shop price index rose 1.0 percent in April from a year ago, following March's 1.2 percent increase.
Non-food prices dropped 0.1 percent, offsetting a 0.1 percent rise in March. At the same time, food inflation eased to 3.1 percent from 3.4 percent in the previous month.
'Bigger discounts in clothing, furniture and DIY goods helped pull down shop price inflation in April,' BRC Chief Executive Helen Dickinson said. 'With weakening consumer confidence, retailers competed harder on price to stimulate more spring spending,' she added.
'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,' said Dickinson.
Mike Watkins, Head of Retailer and Business Insight, NIQ said increased fuel prices are already driving higher inflation. Similar inflationary pressures in food and non-food supply chains are expected in the months to come.
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