Lower energy prices pushes inflation ever closer to 2%

Responding to the latest CPI inflation figures which show headline inflation falling to 2.3% and food inflation falling 1.1 percentage points to 2.9%, Kris Hamer, Director of Insight of the British Retail Consortium, said:

“Inflation continued to head back towards the Bank of England’s 2% target, with a significant drop in April. The lowest energy price cap in two years and food inflation falling to its lowest level since November 2021, helped to reduce pressure on household finances and brighten their outlook for the economy. There were also notable falls in the inflation rate of clothing and footwear and alcoholic beverages. And there was good news for fruit lovers as the price of fresh, dried and preserved fruit products all fell on the month.

“Retailers are playing a key part in bringing inflation down, but it is vital that government policy supports this too. Retail plays a key role in every part of the country, from the smallest village to the largest city, employing millions of people, and serving millions more. As the cost burden of new policies rises – from business rates to packaging taxes – this affects not just the businesses, but the customers too. With an election looming, it is vital that parties outline their support for customers and retailers through the upcoming manifestos.”