Period Covered:
01 – 07 July
2023
- Annual Shop Price inflation decelerated to 7.6% in July, down
from 8.4% in June. This is below the 3-month average rate of
8.4%. Shop price inflation is at its lowest level this year.
- Non-Food inflation decelerated to 4.7% in July, down from
5.4% in June. This is below the 3-month average rate of 5.3%.
This is the lowest level since December 2022.
- Food inflation decelerated to 13.4% in July, down from 14.6%
in June. This is below the 3-month average rate of 14.5% and is
the third consecutive deceleration in the food category. This is
the lowest level since December 2022.
- Fresh Food inflation slowed further in July, to 14.3%, down
from 15.7% in June. This is below the 3-month average rate of
15.7% and inflation in this category remains elevated. This is
the lowest level since November 2022.
- Ambient Food inflation decelerated to 12.3% in July, down
from 13% in June. This is below the 3-month average rate of 12.8%
and is the lowest since February 2023.
|
|
OVERALL SPI
|
FOOD
|
NON-FOOD
|
|
% Change
|
On last year
|
On last month
|
On last year
|
On last month
|
On last year
|
On last month
|
|
July-23
|
7.6
|
-0.1
|
13.4
|
0.3
|
4.7
|
-0.2
|
|
June-23
|
8.4
|
0.2
|
14.6
|
0.5
|
5.4
|
0.0
|
Helen Dickinson, OBE, Chief Executive of the British
Retail Consortium, said:
“Shop price inflation fell to its lowest level of 2023 and, for
the first time in two years, prices fell compared to the previous
month. Leading the cuts was clothing and footwear, where
retailers mitigated wet weather with larger discounts. 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.
“These figures give cause for optimism, but 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. We expect some global commodity prices to rise again as
a result, and food prices will be slower to fall. Retailers
continue working hard to keep falling prices on track. Government
must also play its part and freeze business rates from next
April, or else risk adding a £400m additional pressure on
prices.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“The summer holiday period should help discretionary spend a
little and whilst inflation remains high, the outlook is
improving. Shoppers continue to change how they shop as part of
their coping strategies. This includes shopping at different
retailers, buying lower priced items, delaying spend or only
buying when there are promotions. This behaviour looks set to
continue.”
