BRC: Food inflation continues to fall

Responding to the latest CPI inflation figures which shows headline inflation falling to 7.9% and food inflation falling to 17.3%, Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“Efforts by retailers to curb price rises and reduce inflation appear to be paying off as inflation rates for food fell for the third month in a row. Prices for cheese, fruit and fish all dropped as lower commodity costs and cheaper energy prices filtered through to customers. There were also drops for many non-food items such as children’s clothing, household textiles, and domestic appliances, boosted by an increase in summer discounting. However,  supply chains remains volatile: Russia’s decision to pull out of the Black Sea Grain Initiative could increase costs for some staples in the future.

“Falling inflation rates are welcome news, and a clear sign that competition is bringing down prices wherever cost pressures ease. Retailers are doing their bit but Government also has a role to play to bring inflation down: the upcoming Deposit Return Scheme and reformed packaging levy (‘Extended Producer Responsibility’) would saddle retailers with another £4bn in costs, putting renewed pressure on prices. Government should reconsider the timelines for these interventions especially on the back of costs arising from Windsor Framework labelling, and upcoming increases to business rates.”

-ENDS-

Notes:

• ONS Consumer Price Index figures, May 2023.