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UK goods prices rise on conflict-driven inflation, clothing, footwear escape for now

UK clothing and footwear prices fell over the year to March 2026, amid signs of inflationary pressure linked to the conflict in the Middle East.

Jangoulun Singsit April 22 2026

According to the UK Office for National Statistics’ (ONS) latest CPI inflation figures, clothing and footwear prices fell by 0.8% in the 12 months to March 2026.

This marks a reversal from the 0.9% rise seen to February and represents the lowest annual rate since March 2021, a period that saw pandemic-related effects on pricing.

The drop in prices for these categories contributed a downward effect to the overall inflation rate.

On a monthly basis, prices in clothing and footwear category rose by 0.6%, a smaller increase compared to the 2.3% rise a year earlier.

The fall in the 12-month rate was driven mainly by reductions in prices for women’s and children’s clothing.

ONS data showed that Consumer Prices Index (CPI), grew by 3.3% in the 12 months to March 2026,  compared with a 3.0% rise in the 12 months to February 2026.

CPI increased by 0.7% between February and March 2026, compared with a 0.3% rise over the same period in 2025.

Inflation on Core CPI, which excludes energy, food, alcohol and tobacco, increased by 3.1% in the year to March 2026, down from 3.2% in the year to February.

Over the same period, the annual CPI goods rate moved up from 1.6% to 2.1%, and the annual CPI services rate rose from 4.3% to 4.5%.

British Retail Consortium economist Harvir Dhillon said: “The first signs of inflationary pressure stemming from the conflict in the Middle East began to emerge last month, driven largely by rising fuel prices. Across retail, the picture was mixed. Intense competition pushed clothing and footwear back into deflation, but in the grocery sector, mounting cost pressures saw food inflation creep up. Ahead, if food prices follow a similar trend as seen following the Ukraine-Russia conflict, prices will start to ramp up more notably throughout 2026.

“Although the energy price cap and removal of green levies may provide some near-term relief, inflation will rise over the coming quarters as the full impact of the Middle East conflict filters through. As a more energy-intensive sector, supermarkets and their supply chains are likely to be disproportionately affected. With food prices set to rise, it is lower-income households that will be hit hardest. The government must target support towards these retailers, in particular looking at non-commodity charges which push up the cost of businesses’ energy bills. This will help mitigate the peak in food inflation, reducing the squeeze on households.”

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