Period Covered: 01 – 07
October 2023
- Shop Price annual inflation decelerated further to 5.2% in
October, down from 6.2% in September. This is below the 3-month
average rate of 6.1%. Shop price growth is at its lowest since
August 2022.
- Non-Food inflation fell to 3.4% in October, down from 4.4% in
September. This is below the 3-month average rate of 4.2%.
Inflation is its lowest since September 2022.
- Food inflation decelerated to 8.8% in October, down from
9.9% in September. This is below the 3-month average rate of
10.1% and is the sixth consecutive deceleration in the food
category. Inflation is its lowest since July 2022.
- Fresh Food inflation slowed further in October, to 8.3%, down
from 9.6% in September. This is below the 3-month average rate of
9.8% and inflation in this category remains elevated. Inflation
is its lowest since July 2022.
- Ambient Food inflation decelerated to 9.5% in October, down
from 10.4% in September. This is below the 3-month average rate
of 10.4% and is the lowest since October 2022
|
|
OVERALL SPI
|
FOOD
|
NON-FOOD
|
|
% Change
|
On last year
|
On last month
|
On last year
|
On last month
|
On last year
|
On last month
|
|
Oct-23
|
5.2
|
0.3
|
8.8
|
0.4
|
3.4
|
0.2
|
|
Sep-23
|
6.2
|
0.0
|
9.9
|
-0.1
|
4.4
|
0.1
|
Note: Month-on-month % change refers to changes in the
level of prices.
Helen Dickinson, OBE, Chief Executive of the British
Retail Consortium, said:
“Shop price inflation eased for the fifth consecutive month to
its lowest rate since August 2022. Imported goods saw higher
levels of inflation due to a weaker pound, still-high producer
costs and emerging trade frictions, while prices for some
domestically produced foods, such as fruit, were lower compared
to last month. Prices of children’s and baby clothing also fell
as retailers continued to support families as the colder weather
descended.
“Retailers have been battling to keep prices down for their
customers in the face of rising transport costs, high interest
rates and other input costs. To keep inflation heading in the
right direction, it is vital that the Government does not burden
businesses with unnecessary new costs. Without immediate action
from the Chancellor, retailers have an additional £470m per year
on their business rates bill, jeopardising the progress made.
Ultimately, it’s consumers who would pay the price for the rising
rates bill.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“Inflation has helped the topline sales growth of many food
retailers this year but in reality, shoppers have been paying
more and buying less. And the rest of the retail trade has seen
less benefit due to the continued squeeze on discretionary spend.
This this time last year pressure was growing on household
incomes as inflation was accelerating in fuel, energy, and food
so as inflation continues to decelerate, we now need an uptick in
sentiment to help retail sales over the next 8 weeks”.
