According to the latest BRC-Nielsen IQ Shop Price Index, annual shop price inflation eased to 2.5% in February – down from 2.9% in January, and its lowest level since March 2022.
Non-food inflation was unchanged, at 1.3% – still at its lowest since January 2022 – yet furniture prices did rise.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), says: “There was good news for consumers as shop price inflation fell to its lowest rate in nearly two years.
"In non-food, inflation for furniture, electricals, and health and beauty products rose, but the price of clothing continued to fall as many retailers kept promotions in place to entice consumer spend.
“Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope. Domestically, retailers face a major rise to their business rates bills in April, determined by last September’s sky-high inflation rate. April’s rates rise should be based on April’s inflation, and the Chancellor should use the Spring Budget to make this correction, supporting business investment and helping to drive down prices for consumers.”
