Food costs nonetheless rising sooner than wages though total price of retail inflation falls

Food costs are nonetheless rising sooner than wages, new information has proven.

The British Retail Consortium (BRC) reported total meals inflation rose 11.6% in August, down from 14.3% in July.

But annual progress in common complete pay solely grew by 8.2% from April to June, in response to the newest information out there from the Office for National Statistics (ONS).

Fresh meals inflation fell to 11.6% in August, down from 14.3% in July.

Inflation for ambient meals – gadgets saved at room temperature – fell from 12.3% in July to 11.3% in August.

Meanwhile the BRC stated value rises in outlets have slowed to their lowest charges in October final yr however preserve going up considerably.

Prices rose 6.9% within the yr to August, down from 8.4% in July.

While retail inflation has dropped it doesn’t imply gadgets are getting cheaper, simply that costs elevated extra slowly between September 2022 and August 2023 than they did between August 2022 and July 2023.

The BRC confirmed the primary motive retail inflation dropped was as a result of recent meals costs rose much less quickly.

Inflation for non-food gadgets was unchanged at 4.7%, the BRC stated.

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‘Better news for shoppers’

“Better news for consumers as shop price inflation in August eased to its lowest level since October 2022,” the consortium’s chief government Helen Dickinson stated.

“This was driven by falling food inflation, particularly for products such as meat, potatoes and some cooking oils.

“These figures would have been decrease nonetheless had the federal government not elevated alcohol duties earlier this month.”

She said key components of toiletries and cosmetics had become cheaper which helped ease price rises in these categories.

Inflation for clothing and footwear increases

But inflation for clothing and footwear increased as the summer sales came to a close.

“While inflation is on target to proceed to fall due to retailers’ efforts, there are provide chain dangers for retailers to navigate,” Ms Dickinson added.

“Russia’s withdrawal from the Black Sea Grain Initiative and its concentrating on of Ukrainian grain amenities, in addition to poor harvests throughout Europe and past, may function potential roadblocks to decrease inflation.

“A potential £400m hike to business rates bills from next April would certainly jeopardise efforts to tackle inflation unless the chancellor intervenes.”