UK meals value are nonetheless rising however fee of improve is lastly slowing

The value of meals in Britain’s outlets continues to be going up considerably – however the fee of improve is lastly slowing – new information has proven.

The British Retail Consortium (BRC) experiences in the present day (Tuesday, August 29) that the worth rises have slowed to their lowest fee since October final 12 months. It mentioned that costs rose 6.9% within the 12 months to August, down from 8.4% in July.

But this doesn’t imply that issues are getting cheaper – simply that they elevated in value extra slowly between September 2022 and August 2023 than they did between August 2022 and July 2023. The BRC confirmed that the primary motive that retail inflation dropped was as a result of contemporary 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 – objects 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 objects was unchanged at 4.7%, the BRC mentioned. The consortium’s chief govt Helen Dickinson mentioned: “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 mentioned that key elements of toiletries and cosmetics had change into cheaper, which helped ease value rises in these classes. But inflation for clothes and footwear elevated because the summer time gross sales got here to an in depth.

“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,” Dickinson added.