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Sandra Halliday Published
February 27, 2025
UK shop price inflation softened again this month, falling to 2.5% in February, down from 2.9% in January. This is also below the three-month average rate of 3.3% and shop price annual growth is its lowest since March 2025.
That’s according to the latest BRC-NielsenIQ Shop Price Index that was released on Tuesday.
But much of the easing was accounted for by a slowdown in food inflation, which decelerated to 5% in February, down from 6.1% in January.
Non-food inflation may be much lower but was actually static at 1.3% in February. However, while it didn’t fall, it was still below the three-month average rate of 2% and was at the lowest level since January 2025.
The BRC doesn’t break out specific figures for individual categories but it did confirm to Fashionnetwork.com that prices of clothing fell compared to January and also year on year.
It’s hard to say whether that was due to the lingering effects of the clearance sales or was a sign of general weakness in the fashion sector… or perhaps both. It’s very clear from even the briefest look around the shops that fashion retailers have been very promotional lately in the hope of shifting AW24 stock and clearing space for incoming spring collections.
Much now depends on how upbeat consumers feel and whether the weather plays ball at the start of the spring season. And of course, there are other challenges aside from the climate with issues such as deliveries being held up due to conflict in the Middle East.
Helen Dickinson, Chief Executive of the BRC, said: “Easing supply chain pressures have begun to feed through to food prices, but significant uncertainties remain as geopolitical tensions rise. Prices of non-food goods will be more susceptible to shipping costs, which have risen due to the re-routing of imports around the Cape of Good Hope.”