Fresh meals costs assist retail inflation to gradual in August, new figures counsel
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rice rises in British outlets have slowed to their lowest fee since October final yr, however hold going up considerably, new information has proven.
The British Retail Consortium (BRC) reported on Tuesday that costs rose 6.9% within the yr to August, down from 8.4% in July.
It doesn’t imply that issues are getting cheaper, simply that they elevated in worth extra slowly between September 2022 and August 2023 than they did between August 2022 and July 2023.
The BRC confirmed that the principle purpose that retail inflation dropped was as a result of recent meals costs rose much less quickly.
Fresh meals inflation flowed to 11.6% in August, down from 14.3% in July.
Inflation for ambient meals – gadgets that may be saved at room temperature – fell from 12.3% in July to 11.3% in August.
Overall meals inflation slowed from 13.4% to 11.5%. Inflation for non-food gadgets was unchanged at 4.7%, the BRC stated.
While inflation is heading in the right direction to proceed to fall because of retailers’ efforts, there are provide chain dangers for retailers to navigate
The consortium’s chief government Helen Dickinson stated: “Better news for consumers as shop price inflation in August eased to its lowest level since October 2022.
“This was driven by falling food inflation, particularly for products such as meat, potatoes and some cooking oils.
“These figures would have been lower still had the Government not increased alcohol duties earlier this month.”
She stated that key elements of toiletries and cosmetics had grow to be cheaper, which helped ease worth rises in these classes.
But inflation for clothes and footwear elevated because the summer season gross sales got here to a detailed.
“While inflation is on course to continue to fall thanks to retailers’ efforts, there are supply chain risks for retailers to navigate.
“Russia’s withdrawal from the Black Sea Grain Initiative and its targeting of Ukrainian grain facilities, as well as poor harvests across Europe and beyond, could serve as potential roadblocks to lower inflation.
“A potential £400 million hike to business rates bills from next April would certainly jeopardise efforts to tackle inflation unless the Chancellor intervenes.”