Fashion pulse: United Kingdom — April 2026

Consumer prices (April)

UK headline CPI eased to +2.8 percent year-on-year in April 2026 per the Office for National Statistics (ONS), down from plus 3.3 percent in March — the lowest reading since March 2025 and a 50 basis-point single-month moderation. The Bank of England targets headline CPI at 2 percent, so April sits 80 basis points above target but has moved sharply closer. Core CPI, excluding energy, food, alcohol and tobacco, eased to +2.5 percent from +3.1 percent.

Fashion prices flipped from deflation to inflation. Clothing and footwear rose plus 0.7 percent year-on-year in April, up from minus 0.8 percent in March — a 1.5-percentage-point reversal and the first positive print since February. Even so, clothing and footwear is rising well below the headline rate, keeping apparel a relative bargain for cost-conscious shoppers.

Retail sector (April)

UK clothing retail weakened in April on the ONS Retail Sales Index. Clothing and footwear store volumes fell 2.4 percent over the month to their lowest level since June 2025, leaving the volume index flat year-on-year (98.3) even as the value index rose plus 1.5 percent — the value-volume gap confirms that what revenue exists comes from higher prices, not more items sold. The three-month-on-three-month volume trend was minus 1.0 percent, extending a loss of momentum after firmer March readings (volume plus 2.2 percent, value plus 2.7 percent year-on-year).

Online held its place in the fashion channel mix. The online share of clothing and footwear retail was 29.3 percent in April, down from 30.0 percent in March, with the internet clothing value index easing to 108.5 from 113.8. The month-on-month volume drop alongside positive value growth echoes the CPI signal — prices firming while units fall.

Monetary policy and currency

The Bank of England (BoE) held the Bank Rate at 3.75 percent through April, unchanged all year. The pound weakened slightly against the euro — GBP/EUR averaged 0.8693 in April versus 0.8663 in March, a 0.35 percent move — while the euro itself strengthened 1.28 percent against the US dollar. With sterling near 1.35 dollars, landed costs for UK fashion importers sourcing US dollar-invoiced Asia were broadly stable month-on-month.

What it means for fashion

The UK's April story is clean disinflation, with fashion prices turning up while fashion volumes stay soft. Headline CPI at 2.8 percent is the lowest since March 2025, easing the cost-of-living squeeze on real incomes, while clothing and footwear inflation flipped to plus 0.7 percent after months of deflation.

For Marks & Spencer, Next, Primark, John Lewis and the substantial UK networks of Inditex and H&M, the read is mixed. Disinflation supports consumer spending power, but clothing volumes fell 2.4 percent on the month to their lowest since June 2025 — with the three-month trend at minus 1.0 percent — so the revenue that exists is price-led rather than demand-led.

Headline inflation below 3 percent gives the Bank of England more policy headroom. The modest sterling-euro move and broadly steady cross-rates leave import costs roughly neutral.

Note: this article combines the most recent official data available at the time of writing. Reporting lags differ by indicator and country, so not all figures refer to the same month. Each data point is labelled with its reference period.