Retail association hopes for ‘consumer confidence’

The British Independent Retailers Association has said recent figures from the BRC-Nielsen Shop Price Index will prompt more consumer confidence.

Speaking about the report, BIRA, which works with over 6,000 independent businesses of all sizes across the UK, said the figures which have shown their lowest levels since May 2022, would help boost more confidence shopping on the high street.

It has also reported that Shop Price annual inflation eased to 2.9% in January, down from 4.3% in December. This is below the 3-month average rate of 3.9%. Shop price annual growth is its lowest since May 2022. Non-Food inflation fell to 1.3% in January, down from 3.1% in December. This is below the 3-month average rate of 2.4%. Inflation is its lowest since February 2022.

Food inflation decelerated to 6.1% in January, down from 6.7% in December. This is below the 3-month average rate of 6.8% and is the ninth consecutive deceleration in the food category. Inflation is its lowest since June 2022. Fresh Food inflation slowed further in January, to 4.9%, down from 5.4% in December. This is below the 3-month average rate of 5.6%. Inflation is its lowest since May 2022.

Ambient Food inflation decelerated to 7.7% in January, down from 8.4% in December. This is below the 3-month average rate of 8.5% and is the lowest since July 2022.

Andrew Goodacre, BIRA CEO:

“After a blip in December it is good to see inflation falling again. Given the low demand it is no surprise to see non-food retailers needing to discount significantly. However, this means reduced margins at a time when the costs of running a business continue to rise. We hope that lower inflation results in a cut in interest rates to boost consumer confidence. We also hope that the Chancellor uses his Spring budget to further improve consumer confidence and focus on economic growth.”