The strength of consumer confidence is anticipated to further strengthen as the average prices of food and non-alcoholic beverages have witnessed a sharp increase in the last 45 years.
The prices of fresh food have surged by 17.8%, while those of tinned goods and other store-cupboard items have surged by 12.9% year-on-year for April.
The latest data from the BRC-Nielsen shop price index revealed that, compared to the same period in the previous year, shop prices surged by 8.8% last month.
However, in March, these figures declined a bit from 8.9% after spring sales at clothing and furniture retailers.
In a bid to attract costumes, the prices were reduced; thus, the inflation of non-food stores dropped from 5.9% to 5.5% in March.
The chief executive of the British Retail Consortium, Helen Dickinson, revealed: “Overall shop price inflation eased slightly in April due to heavy spring discounting in clothing, footwear, and furniture.”
“However, food prices remained elevated given ongoing cost pressures throughout the supply chain.”
“The knock-on effect from increased production and packaging costs meant that ready meals became more expensive, and coffee prices were also up due to the high cost of coffee beans as well as key producer nations exporting less.”
“Meanwhile, the price of butter and vegetable oils started to come down as retailers passed on cost savings from further up the supply chain.”
The head of retail and business insight at NielsenIQ, Mike Watkins, stated: “In recent weeks, more retailers have used loyalty schemes or money-off promotions to help stimulate sales.”
“However, with inflation yet to peak and sales volumes in decline in many channels, it’s difficult to second-guess the strength of consumer confidence.”
As more and more households find it challenging to keep up with bills and food costs, nearly three million emergency parcels were handed out at food banks in March, as per the data revealed by the Trussell Trust Charity.
For the first time, children were handed out one million food parcels.
- Published By Team Timeswire