Period Covered: 01 – 07
December 2023
- Shop Price annual inflation was unchanged at 4.3% in
December. This is below the 3-month average rate of 4.6%. Shop
price growth remains at its lowest since June 2022.
- Non-Food inflation rose to 3.1% in December, up from 2.5% in
November. This is above the 3-month average rate of 3.0%.
Inflation is its lowest since September 2022.
- Food inflation decelerated to 6.7% in December, down from
7.7% in November. This is below the 3-month average rate of 7.7%
and is the eighth consecutive deceleration in the food category.
Inflation is its lowest since June 2022.
- Fresh Food inflation slowed further in December, to 5.4%,
down from 6.7% in November. This is below the 3-month average
rate of 6.7%. Inflation is its lowest since May 2022.
- Ambient Food inflation decelerated to 8.4% in December, down
from 9.2% in November. This is below the 3-month average rate of
9.0% and is the lowest since August 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
|
|
Dec-23
|
4.3
|
0.4
|
6.7
|
0.0
|
3.1
|
0.5
|
|
Nov-23
|
4.3
|
0.0
|
7.8
|
0.3
|
2.5
|
-0.1
|
Note: Month-on-month % change refers to changes in the
level of prices.
Helen Dickinson, Chief Executive of the British Retail
Consortium, said:
“Overall shop price inflation remained steady in December.
Households did have reason to celebrate as food inflation fell
for the eighth consecutive month thanks to retailers’ efforts to
bring down prices in the run-up to Christmas. There was cause for
merriment as prices of wine, port and sherry fell on the month.
Non-food products had a more challenging December, with price
inflation rising again following retailers’ investment in
November Black Friday discounting and ahead of the January
sales.”
“Retailers will continue to do all they can to keep prices down
in 2024, but there are obstacles on the road ahead. New border
checks for EU imports, hundreds of millions more on business
rates bills from April. Government should think twice before
imposing new costs on retail businesses that would not only hold
back vital investment in local communities, but also push up
prices for struggling households.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
"NIQ research showed that low price,
quality, and availability were the top factors for shoppers when
planning where to do their main Christmas grocery shop this year
so the further fall in shop prices will have helped shoppers
celebrate the festive season. But there was a lot of pressure on
discretionary spend and price discounting was deeper and began
earlier not just in the non-food channel but also in food retail,
where promotions got back to a 4 year high at the end of the
year.”
