British Retail Consortium reviews 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.

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

Charges proceed to decelerate

Mike Watkins, head of retailer and enterprise perception, NielsenIQ, stated: “The summer season vacation interval ought to assist discretionary spend a bit of and while inflation stays excessive, the outlook is bettering. Buyers proceed to alter how they store as a part of their coping methods. This contains procuring at totally different retailers, shopping for decrease priced gadgets, delaying spend or solely shopping for when there are promotions. This behaviour appears to be like 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, stated: “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 reminiscent of 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 in consequence, and meals costs will likely be slower to fall. Retailers proceed working onerous to maintain falling costs on observe.

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

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