UK shoppers saw further easing in fashion costs over the year to March 2026, as clothing and footwear moved back into deflation even while headline inflation accelerated. New figures from the Office for National Statistics (ONS) show UK clothing and footwear prices fell 0.8% in the 12 months to March, a sharp swing from the 0.9% annual increase recorded in the year to February.
The annual decline is the weakest reading for the category since March 2021, when pandemic-era disruption was still distorting pricing patterns. The drop helped pull down the overall inflation rate, acting as a rare deflationary component within a basket where other costs are rising.
On a month-to-month basis, clothing and footwear prices increased 0.6% between February and March, but that was far more subdued than the 2.3% rise recorded over the same period a year earlier. The ONS said the shift in the 12-month rate was largely driven by lower prices in women’s and children’s clothing.
While fashion became cheaper year on year, the broader inflation picture worsened. Headline CPI rose 3.3% in the 12 months to March 2026, up from 3.0% in the year to February. CPI also increased 0.7% between February and March, compared with a 0.3% rise in the same month last year.
Core CPI excluding energy, food, alcohol and tobacco rose 3.1% year on year, edging down from 3.2% in February. Beneath the surface, goods inflation strengthened, with the annual CPI goods rate climbing from 1.6% to 2.1%, while services inflation increased from 4.3% to 4.5%.
The British Retail Consortium said emerging pressures linked to the Middle East conflict are beginning to show up, particularly through higher fuel costs, even as intense competition keeps fashion pricing tight. BRC 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.”
For fashion retailers, the latest reading suggests UK clothing and footwear prices remain under downward pressure despite broader inflation firming—highlighting how competitive discounting and product mix shifts can diverge from the wider cost environment that is being influenced by energy and geopolitical factors.
