Battle on high street sees inflation tumble

The rate fell to just 0.4 per cent as goods including clothes and footwear, electricals and furniture all tumbled in value.

It reflected intense price competition among retailers, after freezing weather hit spending, with spring fashion lines as well as gardening products failing to take off.

Food prices continued to rise, though at a slower rate than before, according to figures from the British Retail Consortium (BRC).

The rate fell to 3.5 per cent from 2.9 per cent the previous month.

Non-food products, which rose 0.2 per cent in March, returned to deflationary territory with a 1 per cent rate of decline.

The overall shop price inflation level, of 0.4 per cent, is its lowest since November 2009 and well below the latest official rate of consumer price inflation (CPI) of 2.8 per cent. But CPI also takes into account a range of other factors such as car insurance that push it up.

Helen Dickinson, the BRC director general, said: “Household finances are clearly under pressure but it’s clear that isn’t coming from the shops.

“In April, overall shop price inflation was sharply down on the previous month, to its lowest for three and a half years, as a result of retailers working harder on promotions to encourage customers and the easing of some commodity costs.”