Shop price inflation eases

City A.M. Reporter
Shop price inflation slowed in March as grocers offered discounts on food, a survey showed, providing some relief to consumers hard-pressed by rising taxes and higher fuel prices.

Prices on the high street were still up 2.4 per cent from a year ago, but inflation eased from February's 27-month high of 2.7 per cent, the British Retail Consortium (BRC) said.

Food prices were 0.5 per cent lower compared with February, taking the annual rise in food prices to four per cent in March, the BRC said.

"With the backdrop of falling consumer sentiment, rising fuel bills and the prospect of public sector cuts, retailers are using unprecedented levels of promotions and discounts to drive sales, which have reduced the growing burden on consumer budgets," the BRC said.