Figures released showed the BRC shop price index fell by 0.66 per cent month-to-month but rose by 1.84 per cent for the year to April 2004. BRC director general Kevin Hawkins said: “ The figures for April deliver an unambiguous message for the monetary policy committee - there is no consumer-led inflationary pressure and no justification for a rise in interest rates.
“Recent months have seen high street prices driven by factors outside retailers’ and the Bank of England’s control, such as weather and government-led cost increases. April saw competition - especially in the grocery sector - deliver a fall in the inflation rate. All the figures suggest we are likely to see that trend continuing.
“With increased levels of price competition set to deliver further restrains and downward pressure on prices, a rate rise now is both uneccessary and unhelpful.”
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