Responding to the latest CPI inflation
figures, which show headline inflation holding steady at 2.8% and
food inflation falling to 2.2%, Harvir Dhillon, Economist at the
British Retail Consortium, said:
Headline inflation remained unchanged, as supermarkets cut prices
for both food and drink. Food inflation eased to 2.2% its lowest
since the 2024 Autumn Budget thanks to fierce competition between
grocers. However, it will likely pick up over the coming months
as input costs rise, following the conflict in Iran. Elsewhere,
prices at the fuel pump are likely to have peaked, and are
expected to fall further over the coming months. A 12.7% increase
in energy bills next month will, however, add further upward
pressure on prices.
Retailers are already shouldering a heavy burden of costs, from
higher National Insurance contributions and the triple packaging
tax to supply chain disruption triggered by the Iran conflict. To
ensure prices can remain competitive for consumers in the
long-term, the Government must take pragmatic steps to reduce the
cost of doing business. This should start with a reduction in
non-commodity charges, which are driving high energy bills,
allowing retailers the breathing space to deliver savings for
their customers.
-ENDS-
Notes:
-
ONS Consumer Price Index figures
|
Year on Year changes
|
Apr-26
|
May-26
|
|
CPI (overall index)
|
2.8%
|
2.8%
|
|
01 Food and non-alcoholic beverages
|
3.0%
|
2.2%
|
|
02 Alcoholic beverages and tobacco
|
2.8%
|
2.4%
|
|
03 Clothing and footwear
|
0.7%
|
0.2%
|
|
04 Housing, water, electricity, gas and
other fuels
|
1.4%
|
1.2%
|
|
05 Furniture, household equipment and
maintenance
|
0.5%
|
-0.1%
|
|
06 Health
|
2.4%
|
2.4%
|
|
07 Transport
|
4.5%
|
6.8%
|
|
08 Communication
|
4.5%
|
5.1%
|
|
09 Recreation and culture
|
1.7%
|
1.5%
|
|
10 Education
|
5.1%
|
5.1%
|
|
11 Restaurants and hotels
|
4.4%
|
4.2%
|
|
12 Miscellaneous goods and services
|
2.6%
|
2.4%
|
