As per the British Retail Consortium (BRC), the overall food inflation rose from 14.3% in July to 11.6% in August, while as per the Office for National Statistics (ONS), the annual total income increased by 8.2% from April to June.
The gap between wages and food prices is widening.
Nonetheless, the BRC has stated that although price increases have eased to levels last seen in October of last year, they have continued to rise sharply.
Prices rose from 8.4% in July to 6.9% in August.
Although there has been a drop in retail prices, it does not mean that the items are getting cheaper; it only means that compared to the period between August 2020 and July 2023, they increased slowly between September 2020 and August 2023.
The BRC pointed out that the slow rise in food prices was the real reason why retail inflation dropped.
The BRC also revealed that inflation for non-food products remained at 4.7%.
The consortium’s chief executive, 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 further stated that prices for important cosmetics and toiletry ingredients had become more affordable, easing price increases in these areas.
However, as the summer sales came to an end, inflation for clothing and footwear surged.
But inflation for clothing and footwear increased as the summer sales came to a close.
“While inflation is on course to continue to fall thanks to retailers’ efforts, there are supply chain risks for retailers to navigate,” Ms. Dickinson further stated.
“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.”
- Published By Team Timeswire