BIRA has said that the inflation rate fall to 2.3% is a good step to bringing people back to the high street.
Despite the good news, the British Independent Retailers Association (BIRA) also stressed that the Bank of England now needs to reduce interest rates too.
The UK inflation rate is now at its lowest level in almost three years, meaning prices are still rising, but at a lower rate. Energy prices are at the heart of the drop, as they fell by 27.1% in April.
Andrew Goodacre, ceo of BIRA, commented: “Inflation has fallen lower than expected and is now only slightly above the Bank of England target of 2%. Although the services sector and core inflation has not fallen as much, we hope that the Bank of England will have the confidence to reduce interest rates.
“Reducing interest rates is crucial to fully restoring consumer confidence and bring people back to the high streets.”
