Responding to the latest CPI inflation figures, which show headline inflation falling to 2.6% and food inflation falling to 3.0%, Kris Hamer, Director of Insight of the British Retail Consortium, said:
“Headline inflation fell marginally in March though still remains above the Bank of England’s 2% target. Stable energy prices and falling petrol prices were the main drivers of the fall, while sustained promotional activity by retailers meant inflation in the clothing and footwear category was minimal. Having jumped significantly in recent months, consumers will welcome news that food inflation decreased, despite some extreme weather, poor harvests and high commodity prices. This was driven by falls in price on the month for certain sweeter items such as sugar, jam and honey.”
“The slight easing in inflation in March will prove to be largely insignificant once the figures for April are released next month. Not only will many feel the pinch of rising household bills, but the impact of higher employer National Insurance and NLW could begin to filter through into consumer prices. To protect households, it is essential the government limits the burden on the industry in other areas, ensuring no shop pays more as a result of the upcoming business rates reform.”
