UK Shop Price Inflation Eases to 1.0% in April

LONDON (Reuters) - Shop price inflation in the United Kingdom eased to 1.0 percent year on year in April from 1.2 percent in March, as retailers offered heavy Easter discounts on items such as chocolate eggs, clothing, furniture and home renovation materials to boost spending amid weakening consumer confidence.

The British Retail Consortium (BRC), in a survey of major chains compiled with NIQ, reported that the April figure fell below the three-month average of 1.1 percent. Food price inflation slowed to 3.1 percent from 3.4 percent, while fresh food prices stood 3.9 percent higher than a year earlier. Nonfood prices declined 0.1 percent, reversing a 0.1 percent rise in March.

"With weakening consumer confidence, retailers competed harder on price to stimulate more spring spending," BRC Chief Executive Helen Dickinson said. Bigger discounts in clothing, furniture and DIY goods contributed to the overall slowdown, along with Easter promotions on food items.

Separate data from the Confederation of British Industry, released Monday, indicated retailers reported the largest drop in sales volumes in more than 40 years, highlighting deteriorating demand.