Period Covered: 01 – 07
June 2023
- Shop Price annual inflation decelerated to 8.4% in June, down
from 9.0% in May. This is below the 3-month average rate of 8.7%.
- Food inflation decelerated to 14.6% in June, down from
15.4% in May. This is below the 3-month average rate of 15.2% and
is the second consecutive deceleration in the food category.
- Fresh Food inflation slowed further in June, to 15.7%, down
from 17.2% in May. This is below the 3-month average rate of
16.8%.
- Ambient Food inflation decelerated slightly to 13.0% in June,
down from 13.1% in May. This is in line with the 3-month average
rate of 13.0% and is the second fastest rate of increase in the
ambient food category on record.
- Non-Food inflation decelerated to 5.4% in June, down from
5.8% in May. This is below the 3-month average rate of 5.6%.
|
|
OVERALL SPI
|
FOOD
|
NON-FOOD
|
|
% Change
|
On last year
|
On last month
|
On last year
|
On last month
|
On last year
|
On last month
|
|
June-23
|
8.4
|
0.2
|
14.6
|
0.5
|
5.4
|
0.0
|
|
May-23
|
9.0
|
0.5
|
15.4
|
0.5
|
5.8
|
0.5
|
Helen Dickinson, OBE, Chief Executive of the British
Retail Consortium, said:
“Households up and down the country will welcome the easing of
shop price inflation in June. Food inflation slowed for the
second consecutive month, particularly for fresh products, as
retailers cut the price of many staples including milk, cheese
and eggs. Clothing and electrical goods also saw falling prices,
helping customers to pick up a bargain ahead of the summer
holidays.
“If the current situation continues, food inflation should drop
to single digits later this year. However, it is imperative that
Government does not hamper this progress by introducing costly
new policies. Reforms to the packaging Levy (Extended Producer
Responsibility) and a new deposit return scheme, could create an
additional £4bn burden on retailers and their customers. Along
with a rise in business rates, and the introduction of border
controls in October, these policies could hinder the Government’s
efforts to combat inflation.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“Whilst prices are still higher than a year ago, the slowdown in
food inflation is welcome news for shoppers, helped by
supermarkets lowering prices of some staple goods. And if global
supply chain costs continue to fall, we may now be past the peak
of price increases. However, with most households needing to save
money, purchasing behaviour for the rest of this year is still
likely to shift towards essential needs with discretionary
consumption being deprioritised or delayed.”
