The British Retail Consortium (BRC) has released shop price inflation data for the period 1st to 7th March, providing a snapshot of the current retail landscape. According to the report, shop price inflation edged up in March, despite food inflation easing as dairy prices fell with lower wholesale milk costs.
Shop Price Inflation Edges Up
As Helen Dickinson, Chief Executive of the BRC, notes, “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.” This strategic move aimed to drive sales ahead of the Easter period. However, this increase in shop price inflation is attributed to higher costs resulting from the conflict in the Middle East starting to feed into supply chains.
Impact on Retailers and Consumers
Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, points out that while food inflation slowed in recent weeks, shoppers are becoming increasingly aware of their spending habits. “Shoppers are increasingly conscious of the amount of money they are spending at the checkout,” he notes. Non-food retailers will be hoping for a strong Easter period to drive sales, but 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
- Shop Price Inflation:** 1.8% (compared to 1.7% in February)
- Foie Gras:** -3.5% (compared to -3.2% in February)
- Food and Beverage:** 1.4% (compared to 1.6% in February)
Government’s Role in Mitigating Price Rises
Helen Dickinson urges the government to address the costs that could exacerbate price rises, including new healthy food rules, trade changes with Europe, and non-commodity charges which make up a significant portion of energy bills. “Ignoring businesses’ concerns risks even higher prices for shoppers,” she cautions.
Conclusion
The subdued March shop price inflation data suggests that retailers are adapting to the current economic climate by offering promotions and driving sales. However, as the conflict in the Middle East continues to impact supply chains, it remains uncertain whether this trend will continue or if prices will rise further. The government’s actions in addressing these costs will play a crucial role in mitigating price rises and ensuring that consumers are not disproportionately affected.