BRC: Subdued March Shop Price Inflation

The BRC has published shop price inflation data covering the period 1st to 7th March.

• Shop price inflation increased to 1.2% year on year in March, against growth of 1.1% in February. This is below the 3-month average of 1.3%.
  
  
• Non-Food inflation increased to 0.1% year on year in March, against a decline of -0.1% in February. This is in line with the 3-month average of 0.1%.
  
  
• Food inflation decreased to 3.4% year on year in March, against growth of 3.5% in February. This is below the 3-month average of 3.5%.
  
  
• Fresh Food inflation increased to 4.4% year on year in March, against growth of 4.3% in February. This is in line with the 3-month average of 4.4%.
  
  
• Ambient Food inflation decreased to 2.0% year on year in March, against growth of 2.3% in February. This is below the 3-month average of 2.4%.

Helen Dickinson, Chief Executive of the BRC, said:
“Shop price inflation edged up in March, despite food inflation easing as dairy prices fell with lower wholesale milk costs. Retailers offered promotions on alcohol, TVs and sound systems in the run up to final Six Nations weekend, as well as on clothing & footwear to entice consumers to spend. 

“Higher costs resulting from the conflict in the Middle East are starting to feed into supply chains. While retailers will work with their suppliers to mitigate the impact on prices as far as possible, inflation will rise, although there are no indications it will reach the peaks of the last spike in April 2023. Government needs to look at all the costs that could exacerbate these price rises, from new healthy food rules to trade changes with Europe, the Employment Rights Act and non-commodity charges which make up such a large proportion of energy bills. Ignoring businesses’ concerns risks even higher prices for shoppers.”

Mike Watkins, Head of Retailer and Business Insight, NIQ, said:
“Whilst it’s good news that food inflation slowed in recent weeks, shoppers are increasingly conscious of the amount of money they are spending at the checkout, and non-food retailers will be hoping for a good Easter to drive sales. However, if price rises come through the supply chain over the next few months, this has the potential to take the edge off retail growth.”

Data from 01-07 March 2026

Source : BRC

Image : Dilok Klaisataporn / iStock / 1414982888

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.