UK Shop Price Inflation Slows as Retailers Offer Heavy Discounts

In April 2026, the British Retail Consortium (BRC) recorded shop price inflation at 1 % year-on-year, down from 1.2 % in March and below the three-month average of 1.1 %. Retailers applied heavy discounts on clothing, furniture and DIY goods to spur spending amid weakening consumer confidence.

The Guardian

The slowdown coincides with rising energy and food costs linked to the war in Iran. UK inflation rose to 3.3 % in March from 3.0 % in February. A GfK survey showed April consumer confidence fell to its lowest since October 2023. Chief Secretary Darren Jones warned food and fuel prices will stay elevated for at least eight months after the conflict ends.

The Guardian

• Non-food items inflation fell to –0.1 % in April (vs +0.1 % March).

The Guardian

• Food price inflation dropped to 3.1 % from 3.4 %; fresh-food inflation slowed to 3.9 %, below the three-month average of 4.2 %.

The Guardian

• CBI said 68 % of retailers reported volume declines in the year to April, the lowest since 1983, while online sales fell at the fastest rate since January 2024 and wholesale activity stayed subdued.

The Guardian

Helen Dickinson, BRC chief executive, said retailers “competed harder on price to stimulate more spring spending” and warned the “full force of the Middle East conflict” will soon affect consumer prices. Martin Sartorius, CBI economist, said “retail conditions deteriorated in April, with sales momentum weakening noticeably against a backdrop of fragile consumer confidence.” Darren Jones warned higher food and fuel prices will persist for months after the Iran war ends. BRC urged government to fix “non-commodity charges,” which comprise half of business energy bills.

The Guardian

The BRC criticised energy-cost policies, urging the government to regulate non-commodity charges that add half of business energy bills, arguing these ancillary costs drive retail price pressures.

The Guardian

While the BRC reports a modest easing of shop price inflation, the CBI notes sales volumes remain depressed, indicating demand has not recovered despite discounts. No source forecasts the durability of the slowdown, and data on discounting’s impact on retailer margins is absent.

The Guardian

• “With weakening consumer confidence, retailers competed harder on price to stimulate more spring spending.” — Helen Dickinson, Chief Executive, BRC

The Guardian

• “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.” — Helen Dickinson, BRC

The Guardian

• “Martin Sartorius, the lead economist at the CBI, said: “Retail conditions deteriorated in April, with sales momentum weakening noticeably against a backdrop of fragile consumer confidence.” — Martin Sartorius, Economist, CBI

The Guardian

• “Mike Watkins, the head of retailer and business insight at NIQ, said increased fuel prices are already leading to higher inflation, and the UK should expect to see a similar impact in the food and non-food supply chains in the months to come.” — Mike Watkins, Head of Retailer and Business Insight, NIQ

The Guardian

Retailers anticipate continued sales weakness in May, according to the CBI. The BRC’s request for government action on non-commodity charges should shape policy discussions. Analysts, including NIQ’s Mike Watkins, warn rising fuel costs could reignite inflationary pressures across food and non-food supply chains in coming months.

The Guardian