Period Covered: 01 – 07
August 2024
- Shop Price deflation was at 0.3% in August, down from
inflation of 0.2% in the previous month. This is below the
3-month average rate of 0.0%. Shop price annual growth remained
at its lowest rate since October 2021.
- Non-Food remained in deflation at -1.5% in August, further
down from -0.9% in the preceding month. This is below the 3-month
average rate of -1.1%. Inflation is at its lowest rate since July
2021.
- Food inflation slowed to 2.0% in August, down from 2.3%
in July. This is below the 3-month average rate of 2.%. The
annual rate continues to ease in this category and inflation is
at its lowest rate since November 2021.
- Fresh Food inflation slowed further in August, to 1.0%, down
from 1.4% in July. This is below the 3-month average rate of
1.3%. Inflation is its lowest rate since October 2021.
- Ambient Food inflation decelerated to 3.4% in August, down
from 3.6% in July. This is below the 3-month average rate of 3.7%
and is the lowest rate since March 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
|
|
Aug-24
|
-0.3
|
0.0
|
2.0
|
0.2
|
-1.5
|
-0.1
|
|
Jul-24
|
0.2
|
-0.1
|
2.3
|
0.1
|
-0.9
|
-0.2
|
Note: Month-on-month % change refers to changes in the
level of prices.
Helen Dickinson OBE, Chief Executive of the BRC,
said:
“Shop prices fell into deflation for the first time in nearly
three years. This was driven by non-food deflation, with
retailers discounting heavily to shift their summer stock,
particularly for fashion and household goods. This discounting
followed a difficult summer of trading caused by poor weather and
the continued cost of living crunch impacting many families. Food
inflation eased with fresh food prices, especially fruit, meat
and fish, seeing the biggest monthly decrease since December 2020
as supplier input costs lessened.”
“Retailers will continue to work hard to keep prices down, and
households will be happy to see that prices of some goods have
fallen into deflation. The outlook for commodity prices remains
uncertain due to the impact of climate change on harvests
domestically and globally, as well as rising geopolitical
tensions. As a result, we could see renewed inflationary
pressures over the next year.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
“Shop price inflation has fallen
again in August as many non-food retailers have kept promotional
support due to the unpredictable weather and food retailers have
introduced more price cuts to help drive incremental sales during
the ‘summer of sport'.”
