British Retail Consortium experiences meals inflation is slowing

Posted on Aug 2, 2023

Meals inflation has hit its lowest degree since December 2022 as fee of inflation continues to gradual every month.

Meals inflation has decelerated since December 2022.

Within the first week of July, inflation charges continued to decelerate:

Meals inflation decelerated to 13.4%, down from 14.6% in June
Recent meals inflation slowed to 14.2%, down from 15.7% in June
Ambient meals inflation decelerated to 12.3%, down from 13% in June
Annual store worth inflation decelerated to 7.6%, down from 8.4% in June

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Charges proceed to decelerate

Mike Watkins, head of retailer and enterprise perception, NielsenIQ, mentioned: “The summer season vacation interval ought to assist discretionary spend slightly and while inflation stays excessive, the outlook is bettering. Consumers proceed to vary how they store as a part of their coping methods. This consists of procuring at totally different retailers, shopping for decrease priced objects, delaying spend or solely shopping for when there are promotions. This behaviour seems set to proceed.”

“Additional provide chain points could add to enter prices for retailers within the months forward.”

Helen Dickinson

Helen Dickinson, OBE, chief government of the British Retail Consortium, mentioned: “Store worth inflation fell to its lowest degree of 2023 and, for the primary time in two years, costs fell in comparison with the earlier month.

“Meals worth inflation additionally slowed to its lowest degree this yr, with falling costs throughout key staples corresponding to oils, fat, fish, and breakfast cereals.

“These figures give trigger for optimism, however additional provide chain points could add to enter prices for retailers within the months forward. Russia’s withdrawal from the Black Sea Grain Initiative and subsequent focusing on of Ukrainian grain amenities, in addition to rice export restrictions from India are darkish clouds on the horizon. We count on some international commodity costs to rise once more consequently, and meals costs will probably be slower to fall. Retailers proceed working exhausting to maintain falling costs on monitor.

“Authorities should additionally play its half and freeze enterprise charges from subsequent April, or else danger including a £400m extra stress on costs.”