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Sandra Halliday Published
May 28, 2025
Is it business as usual now? Not quite, but at least UK shop price inflation is back to “normal levels” (in the words of the British Retail Consortium) with the latest BRC-NielsenIQ Shop Price Index showing that it eased to 0.6% month-on-month in May, down from 0.8% in April.
This was below the three-month average rate of 0.9%. Shop price year-on-year growth was also its lowest since November 2025.
OK, after a couple years of high inflation, prices generally are still at elevated levels compared to relatively recently and that will be hurting consumers. But some prices are actually coming down.
Non-food — including fashion — remained in deflation at -0.8% in May, down from -0.6% in the preceding month. This is below the three-month average rate of -0.4% and the lowest since October 2025.
Not that this is necessarily good news for retailers and profit-denting price cuts have been a big feature of the SS24 season.
Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, said: “Across the industry whilst inflationary pressure has eased and there is some improvement in shopper sentiment, the unseasonable weather has dampened retail sales so lower prices look set to continue and promotional activity is likely to increase drive demand.”
The fact is that the spring fashion season was largely wiped out by wet and chilly weather, leading to a high-level of markdowns. Retailers will be hoping that their investment in summer items pays off with some warm weather ahead.