28 May 2024 , 07:32
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Shoppers have been given a boost as retailers slashed prices this month in an effort to stimulate consumer demand, according to new data.
The rate of price increases in shops nationwide has returned to "normal" levels, says a leading retail group. Shop prices in May were just 0.6% higher than the same time last year, marking the lowest growth since November 2021, according to the British Retail Consortium (BRC)-NielsenIQ Shop Price Index.
This figure is a decrease from April's 0.8% and falls below the three-month average rate of 0.9%. The survey period covered the first week of May. While overall prices are still on the rise in shops including supermarkets, department stores, and fashion chains the increase isn't as sharp.
However, some items have seen a drop in prices compared to last year. Non-food products continued to see deflation this month, with prices 0.8% lower in May than the previous year, the survey found. Helen Dickinson, chief executive of the BRC, said: "In non-food, retailers cut furniture prices in an attempt to revive subdued consumer demand for big-ticket items, and football fans have been able to grab some bargains on TVs and other audio-visual equipment ahead of this summer's Euros."
Food prices continued their upward trend but at a slower pace of 3.2% in May, down from 3.4% in April. Fresh food inflation has dipped to its lowest since November 2021, while other food inflation covering shelf-stable items like tinned goods and biscuits remains high, particularly for sugary products hit by global sugar price hikes.
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The British Retail Consortium highlighted the persistent issue with sweet products due to soaring sugar costs. Mike Watkins, NielsenIQ's head of retailer and business insight, said: "Across the industry, whilst inflationary pressure has eased and there is some improvement in shopper sentiment, the unseasonable weather has dampened retail sales so lower prices look set to continue and promotional activity is likely to drive demand."
Latest figures released on Friday reveal a 2.3% drop in UK retail sales for April, as poor weather kept consumers away from high streets and ongoing financial pressures curbed their spending habits.