British Retail Consortium reviews meals inflation is slowing
2 min read
Meals inflation has hit its lowest stage since December 2022 as charge 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 value 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 little bit and while inflation stays excessive, the outlook is bettering. Consumers proceed to alter how they store as a part of their coping methods. This consists of procuring at completely different retailers, shopping for decrease priced gadgets, delaying spend or solely shopping for when there are promotions. This behaviour seems set to proceed.”
“Additional provide chain points might add to enter prices for retailers within the months forward.”
Helen Dickinson
Helen Dickinson, OBE, chief govt of the British Retail Consortium, stated: “Store value inflation fell to its lowest stage of 2023 and, for the primary time in two years, costs fell in comparison with the earlier month.
“Meals value inflation additionally slowed to its lowest stage this 12 months, with falling costs throughout key staples equivalent to oils, fat, fish, and breakfast cereals.
“These figures give trigger for optimism, however additional provide chain points might add to enter prices for retailers within the months forward. Russia’s withdrawal from the Black Sea Grain Initiative and subsequent concentrating on of Ukrainian grain amenities, in addition to rice export restrictions from India are darkish clouds on the horizon. We anticipate some world commodity costs to rise once more consequently, and meals costs can be slower to fall. Retailers proceed working arduous 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 further stress on costs.”
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