Shoppers warned of rise in prices to come

Shoppers who enjoyed another month of falling prices in April have been warned that that supply issues and rising food and oil costs mean they are unlikely to last.

Pricesfellby1.3%compared with a year earlier, a slower decline than the 2.4% decrease seeninMarch,accordingtothe latest British Retail Consortium-Nielsen Shop Price Index.

A decline in food prices compared with April last year was the result of fewer promotions during the first lockdown, when retailers tried to deter shoppers from stockpiling.

Food prices fell by 0.6%, the first time that food prices have been deflationary since January 2017.

Deflation continued as retailers discounted goods, particularly last season's stock as they made way for the latest products ahead of re-opening.

However, some products, such as furniture, saw prices generally rise due to the combination of high demand and disruption to global supply chains.

British Retail Consortium chief executive Helen Dickinson said: "Falling prices are unlikely to last. In the months ahead retailers will have to battle the cost pressures from Brexitred-tape,risingshipping costs and increasing global food and oil prices.

"As these costs filter through, retailers may be left with no option but to pass on someofthesecoststoconsumers.

"The Government can help by ensuring that the new checks and documentation avoid adding further friction to the import of goods."

Mike Watkins, head of retailer and business insight at Nielsen, said: "If external cost pressuresstarttofeedthrough then shoppers may become more price sensitive.”