Retailers limit price rises in March despite cost pressures
Retailers held back on price rises throughout March, despite cost pressures weighing upon the sector.
Retailers held back on price rises throughout March, despite cost pressures weighing upon the sector.
Overall shop price inflation jumped to -0.4% year on year in March, against a drop of -0.7% the month prior.
Non-food inflation grew to -1.9% year on year during March, compared to a decline of -2.1% in February.
Additionally, food inflation was up to 2.4% year on year in March, against growth of 2.1% the month before, with ambient food witnessing the highest rise to 3.7% in March, from 2.8% growth in February.
However, fresh food prices fell to 1.4% year on year in March, compared to growth of 1.5% in February.
British Retail Consortium (BRC) CEO Helen Dickinson said: “Retailers continue to do all they can to protect customers from the cost pressures bearing down on the industry.
“Prices fell for most non-food categories, which kept year-on-year overall shop prices in deflation, but at a reduced rate compared to February.
“Clothing and footwear was in double digit deflation as a result of weak consumer demand.”
Related Story
She continued: “Across food, price inflation rose year-on-year, with ambient food seeing the highest increase.
“For example, alcoholic and non-alcoholic beverages both saw price increases due to changes to duties and the hangover from high global sugar prices.”
Dickinson noted that inflation was likely to “accelerate” during the coming months, as retailers braced for “significant extra costs” kicking in later in the week due to the Budget.
“Along with new packaging taxes later this year, retailers will be shouldering an additional £7bn in costs,” she explained.
“It is crucial that the Employment Rights Bill and business rates reform don’t further inflate costs and increase red tape.”
Earlier this month, the trade association highlighted that food inflation was forecast to rise throughout 2025, as a result of continuing pressures.
Last month, it was also reported that inflation hit its highest point in almost a year in January, driven by rising food prices.
Click here to sign up to Retail Gazette‘s free daily email newsletter
