Shop price inflation falls to lowest level of 2023

investmentweek.co.uk:

Food price inflation also slowed to its lowest level this year, with falling prices across key staples such as oils, fats, fish, and breakfast cereals.

Overall annual shop prices inflation fell to 7.6% in July, from 8.4% in June, according to the British Retail Consortium-Nielsen shop price index.

ECB hikes rates to match record high as inflation set to remain 'too high for too long'

Leading the cuts was clothing and footwear, where retailers mitigated wet weather with larger discounts. The prices of non-food goods fell to 4.7% from 5.4% in June.

Food price inflation also slowed to its lowest level this year, with falling prices across key staples such as oils, fats, fish, and breakfast cereals.

Annual food prices inflation eased to 13.4% in July from 14.6% in June. Food prices are now rising at the slowest rate since December last year.

Helen Dickinson, chief executive of the British Retail Consortium, said the figures «give cause for optimism», but cautioned further supply chain issues may add to input costs for retailers in the months ahead. 

Russia's withdrawal from the Black Sea Grain Initiative and subsequent targeting of Ukrainian grain facilities, as well as rice export restrictions from India are «dark clouds on the horizon», she said.

Dickinson added: «We expect some global commodity prices to rise again as a result, and food prices will be slower to fall.»

Retailers continued to «keep falling prices on track», she said, while calling on the government to «also play its part» and freeze business rates from next April, «or else risk adding a £400m additional pressure on prices».

Weakest rise in UK private sector output for six months 'reignites recession worries'

Mike Watkins, head of retailer and business