A sharp increase in clothing prices has doubled the rate of inflation in the UK in April 2021. As per the Office of National Statistics (ONS), UK’s Consumer Price Index (CPI) rose from 0.7 per cent in March to 1.5 per cent in April as clothing and footwear prices rose by 2.4 per cent between March and April 2021. Throughout 2020, clothing and footwear prices followed a different pattern compared to previous years. Clothing prices fell 1.5 per cent in February before rising by 2.4 per cent between March and April 2921. The Retail Sales Index figures by ONS showed a 35.7 per cent year-on-year increase in overall sales in April 2021.

Improved weather during April resulted in greater sales of fashion, particularly in outerwear and knitwear, as the public renewed their wardrobe and made plans to meet friends and family outdoors. Online sales also continued to perform strongly, rewarding those retailers who had invested in their online and delivery operations during the pandemic, said Helen Dickinson, CEO, British Retail Consortium.

However, store footfalls have declined 40 per cent. The end of the full business rates relief in England poses a significant threat to retailers who have spent well over a billion pounds on COVID-secure measures aimed at protecting staff and customers, she added.

Dickinson urged the government to reform the broken business rates system in the ongoing review. This will help the industry to improve digital offering and breath new life into the high streets and town centres, Dickinson added.