“With uncertainty around discretionary spending, we expect the intense competition across the marketplace to keep price increases as low as possible this summer,” said Mike Watson, head of retailer and business insight at NielsenIQ.
Official figures showed that the UK’s headline inflation rate – which charts price rises across the economy – hit the Bank of England’s 2% target for the first time in almost three years in May.
However, even though inflation is falling, it does not mean the prices of goods and services overall are coming down, just that they are rising at a slower pace.
The Bank of England has also put up interest rates to try to dampen down consumer demand, driving up mortgage rates and rents.
Experts are also warning of a bumpy road ahead.
The Middle East conflict continues to affect trading in the Red Sea, a popular shipping route, forcing firms to take longer and more expensive diversions.
As a result these higher logistics costs could be passed on to consumers.
“The last few years should serve as a warning that where business costs rise significantly, consumer prices are forced up too,” Mr Watkins said, urging whoever wins Thursday’s general election to address “some of the major cost burden weighing down the retail industry”.
