UK Retail Inflation Hits Nearly Two-Year Low, Eased by Food and Fashion Prices

The British Retail Consortium reports a significant slowdown in shop price inflation, marking a relief for consumers amidst economic challenges.

Annual shop price inflation in the UK has slowed to 2.5% in February from 2.9% the previous month, reaching its lowest level since March 2022.
The decrease in inflation was largely driven by a drop in food prices, which saw a significant reduction from 6.1% in January to 5% in February.
Retailers have intensified promotions and price cuts, particularly in the food and fashion sectors, to attract cash-strapped shoppers.
Easing supply chain pressures and lower costs for energy and fertilisers have contributed to the slowdown in price increases.
Despite the positive trend, uncertainties remain due to geopolitical tensions and potential impacts on shipping costs and non-food item prices.