01 April 2025
Bira has voiced serious concerns over the latest figures from the BRC-NIQ Shop Price Index for March 2025.
Speaking about the report, which can be downloaded from the BRC website, Bira highlighted that while overall shop prices remain in deflation, the acceleration of food inflation poses significant challenges for both retailers and consumers.
Also reported:
- Shop price inflation increased to -0.4% year on year in March, against a decline of -0.7% in February. This is above the 3-month average of -0.6%.
- Non-Food inflation increased to -1.9% year on year in March, against a decline of -2.1% in February. This is inline with the 3-month average of -1.9%.
- Food inflation increased to 2.4% year on year in March, against growth of 2.1% in February. This is above the 3-month average of 2.0%.
- Fresh Food inflation decreased to 1.4% year on year in March, against growth of 1.5% in February. This is above the 3-month average of 1.3%.
- Ambient Food inflation increased to 3.7% year on year in March, against growth of 2.8% in February. This is above the 3-month average of 3.0%.
Andrew Goodacre, CEO of Bira, said: "The retail market continues to show a concerning split with essential categories such as food showing increased inflation while non-essential sectors are forced into deflation to drive sales. Food inflation has a disproportionate impact on consumer spending habits, significantly reducing demand for non-food items that many independent retailers specialise in.
"We're facing what can only be described as an 'Atrocious April' for independent retailers. Non-food shops are already experiencing deflation and reduced margins, and will now see costs rise by inflation-busting amounts – business rates up by 140% and the National Living Wage increasing by 6.7%. The Spring Statement did nothing to bolster consumer confidence. It's an 'Awful April' for consumers, but an even more atrocious one for independent retailers."
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- Combatting the rising tide of retail crime
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- Fighting for fairer business rates
- Overall reducing the regulatory burden
- £1 billion damages claim against Amazon by UK retailers
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