Shop price inflation eases but food costs still 3.5% up on a year ago

Danni Hewson, head of financial analysis at AJ Bell, said: “It’s always important to remember that inflation data is backward looking, but today’s update from the British Retail Consortium feels massively out of date considering nervousness about the potential impact on global prices from the current conflict in the Middle East.

“Whilst February delivered an improving picture as retailers battled for our patronage, the price of food is still considerably higher than it was a year ago.

“Households had been hoping that this was the year they would get some much-needed relief from the ravages of rising prices, and things had generally been going in the right direction. For consumers and retailers alike the prospect of another round of price hikes will be chilling.”