FX.co ★ UK Shop Price Inflation Eases to 4-Month Low

UK shop price inflation rose by 1.0% year-on-year in April 2026, easing from 1.2% in March and coming in below market expectations of 1.5%. This was the slowest pace since December and also lower than the three-month average of 1.1%, partly reflecting discounting on certain goods over the Easter period. Food inflation moderated slightly to 3.3% from 3.4% in March, as retailers cut prices on seasonal Easter products such as chocolate. In contrast, non-food prices slipped by 0.1% year-on-year, following a marginal 0.1% increase in March. “Deeper discounts in clothing, furniture and DIY products helped bring shop price inflation down in April. With consumer confidence weakening, retailers have been competing more aggressively on price to encourage spring spending. While the full impact of the Middle East conflict on consumer prices has yet to be felt, it is unlikely to be long before it starts to feed through,” said BRC Chief Executive Helen Dickinson.