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Shop prices continue to fall in April

Danielle Wightman-Stone| Wednesday, 06 May 2015

Prices in Britain’s shops fell 1.9 percent in April, from 2.1 percent in March, according to figures released by the British Retail Consortium and Nielsen in their monthly index.

While food prices remained at a record low for a second consecutive month, non-food good deflation decelerated to 2.5 percent in April from 2.8 percent in March. However, it still means that April was the 24th consecutive month of falling shop prices and the 25th consecutive month of falling non-food prices.

British Retail Consortium director general, Helen Dickinson, said: "This week sees a general election in the UK and it's my hope that the next government note today's figures as they're indicative of an important story from the last few years.

“Despite the low margins in a fiercely competitive market retailers have kept prices down and in doing so made sure the public are able to see their wages go that little bit further during a difficult period. That help is set to continue."

Mike Watkins, head of retailer and business insight at Nielsen, added: “The challenge for retailers is that despite consumer confidence being back to pre-recession levels, many households are still cautious about spending, and for those with more disposable income, some appear to be spending a little more outside of retail, for example on leisure and entertainment.






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