October sees a decline in food inflation rates, dropping to 1.9%, as highlighted by the British Retail Consortium (BRC).
The British Retail Consortium (BRC) has released figures showing a notable decrease in food inflation for October, with rates falling to 1.9% from 2.3% in September. This decline was observed particularly in categories such as meat, fish, and tea. Helen Dickinson, CEO of the BRC, stated that chocolate and sweets also experienced reduced inflation, aided by seasonal promotions and customer deals.
Fresh food inflation showed a similar downward trend, decreasing to 1% from the previous month’s 1.5%. Meanwhile, ambient food inflation saw a slight reduction, moving from 3.3% to 3.1%. These figures indicate a broader easing in food price pressures, which households are likely to find relieving. However, Dickinson cautioned that the continuation of this trend could be threatened by ongoing geopolitical tensions, climate change’s impact on food supplies, and impending government regulations.
The BRC is urging the Chancellor to use the upcoming Budget to address business rates. It suggests implementing a ‘Retail Rates Corrector’, which would involve a 20% reduction in business rates bills for retail properties. This measure, they argue, would enable retailers to maintain competitive prices, preserve employment, and encourage investment, thereby benefiting the economy.
Additionally, overall shop price deflation was recorded at 0.8% in October, a slight improvement from the 0.6% deflation seen in September, and below the three-month average of -0.6%. Mike Watkins, head of retailer and business insight at NielsenIQ, noted that while inflation in the food supply chain is easing, other cost pressures persist. He emphasised the uncertainty consumers face regarding spending, pointing out that the onset of Christmas promotions is likely to increase competition in both food and non-food retail sectors.
The easing of food inflation in October provides some respite to consumers, yet challenges remain due to geopolitical and regulatory factors, prompting calls for strategic economic measures.
