Period Covered: 01 – 07
January 2023
- Shop Price annual inflation accelerated to 8.0% in January,
up from 7.3% in December. This is above the 3-month average rate
of 7.5%. This leaves shop prices at record-highs.
- Food inflation accelerated to 13.8% in January, up from
13.3% in December. This is above the 3-month average rate of
13.2%. This is the highest inflation rate in the food category on
record.
- Non-Food inflation accelerated to 5.1% in January, up from
4.4% in December. This is in line with the 3-month average rate
of 4.7%. Inflation rose to a fresh high in this category.
- Fresh Food inflation accelerated in January to 15.7%, up from
15.0% in December. This is above the 3-month average rate of
15.0%. This is the highest inflation rate in the fresh food
category on record.
- Ambient Food inflation accelerated to 11.3% in January, up
from 11.0% in December. This is above the 3-month average rate of
10.8%. This is the fastest rate of increase in the ambient food
category on record.
|
|
OVERALL SPI
|
FOOD
|
NON-FOOD
|
|
% Change
|
On last year
|
On last month
|
On last year
|
On last month
|
On last year
|
On last month
|
|
Jan-23
|
8.0
|
0.7
|
13.8
|
1.3
|
5.1
|
0.3
|
|
Dec-22
|
7.3
|
0.3
|
13.3
|
1.1
|
4.4
|
0.0
|
Helen Dickinson OBE, Chief Executive of the British
Retail Consortium, said:
“Retail prices rose in January as discounting slowed and
retailers continued to face high input costs. Ambient food
inflation accelerated the most as wholesale and bulk prices grew,
particularly for sugar and alcohol. Fresh food prices also
remained high due to increased food production costs as well as
elevated wholesale fruit and vegetable prices. Meanwhile,
clothing and footwear prices eased, so customers were able to
replenish their wardrobes with some bargains during the January
sales.”
“With global food costs coming down from their 2022 high and the
cost of oil falling, we expect to see some inflationary pressures
easing. However, as retailers still face ongoing headwinds from
rising energy bills and labour shortages, prices are yet to peak
and will likely remain high in the near term as a result.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“Consumer demand is likely to be weak in Q1 due to the impact of
energy price increases and for many, Christmas spending bills
starting to arrive. So the increase in food inflation is going to
put further pressure on household budgets and it’s unlikely that
there will be any improvement in the consumer mind-set around
personal finances in the near term. With shoppers having less
money to spend on discretionary retail having paid for their
essential groceries, there will be little to stimulate demand
across the non-food channels.”
