It has been announced that UK shop prices fell 1.7% in April which hasn’t changed from the drop seen in March. The report from the British Retail Consortium also confirms that shop prices have been negative for the past three years exactly.

Figures show that non-food decreased 2.9% in April from the 2.6% drop in March, however food saw a return in April with an increase by 0.1% compared to the 0.4% decrease the previous two months.

Chief executive of the BRC, Helen Dickinson, said: “We’ve seen three years of falling shop prices, with prices falling by 1.7% in April compared to a year earlier. The thirty-six consecutive months of price falls is being driven by intense competition across the industry.

“It has knock on implications for margins and profitability given the combination of continued investment in digital and rising cost pressures, compounded by recent policy announcements.
“Ensuring they do not pass on these cost increases, alongside the intensity of competition in the market, are the principal reasons why retailers continue to respond to their customers’ demands for value. As this month’s figures show, this has helped shoppers and kept inflation (and therefore interest rates) low to betterment of the UK economy.”

With non-food prices marking a 37th decrease, the BRC commented that shoppers were finding bargains in electricals, furniture, clothing and footwear and floor covering.