Responding to the latest CPI
inflation figures, which show headline
inflation falling to 2.8% and food inflation
remaining unchanged at 3.3%, Kris Hamer, Director of Insight of
the British Retail Consortium, said:
“Headline inflation fell marginally in February, driven by
marginal drops in housing and household services and clothing and
footwear entering deflation. Despite continued cost pressures,
namely energy price volatility, food inflation remained
unchanged. There was good news as some dairy products such as
milk, cheese and eggs all saw price drops on the month. Heavy
clothing and footwear discounting continued into February, as
fashion sales continue to suffer due to unseasonal weather
throughout the month.”
“Retail operates on tight margins and it would be impossible to
absorb all £5bn of new costs which hit the industry in April.
Food inflation has jumped significantly in recent months and is
forecast to hit 5% by the end of 2025 as a result of the costs
arising from the Budget. On top of this, retailers are still
burdened by an outdated business rates system. It is vital that
the government's reform of business rates doesn't impose
additional costs onto retailers. Reform must leave no shop paying
more.”
-ENDS-
Notes:
-
ONS Consumer Price Index figures
|
Year on Year changes
|
Jan-25
|
Feb-25
|
|
CPI (overall index)
|
3.0%
|
2.8%
|
|
01 Food and non-alcoholic beverages
|
3.3%
|
3.3%
|
|
02 Alcoholic beverages and tobacco
|
4.9%
|
5.7%
|
|
03 Clothing and footwear
|
1.8%
|
-0.6%
|
|
04 Housing, water, electricity, gas and
other fuels
|
2.1%
|
1.9%
|
|
05 Furniture, household equipment and
maintenance
|
0.5%
|
0.2%
|
|
06 Health
|
5.0%
|
5.1%
|
|
07 Transport
|
1.7%
|
1.8%
|
|
08 Communication
|
5.9%
|
7.3%
|
|
09 Recreation and culture
|
3.8%
|
3.4%
|
|
10 Education
|
7.5%
|
7.5%
|
|
11 Restaurants and hotels
|
3.3%
|
3.4%
|
|
12 Miscellaneous goods and services
|
2.8%
|
3.0%
|
