Food inflation in October slowed to 1.9%, down from 2.3% in September, a relief noted by the British Retail Consortium (BRC).
- The slowdown was most apparent in meat, fish, and tea, with retailers offering discounts during the spooky season, says BRC CEO Helen Dickinson.
- Fresh and ambient food both saw reduced inflation rates, recorded at 1% and 3.1% respectively in October.
- The BRC is urging the government to use the Budget to lower retail taxes, providing shops leeway to maintain low prices.
- While food inflation eases, geopolitical tensions and regulatory costs still pose challenges to this trend.
Food inflation has decelerated to 1.9% in October, bringing some respite to consumers from the 2.3% rate seen in September, as reported by the British Retail Consortium (BRC). This decline was particularly noticeable in sectors like meat, fish, and tea. BRC’s CEO, Helen Dickinson, highlighted that the spooky season also brought treats for chocolate and sweets, as retailers offered special deals.
Fresh food inflation experienced a dip, recording a 1% rate in October compared to September’s 1.5%. Similarly, ambient food inflation showed a mild decrease to 3.1% from 3.3%. These shifts indicate a broader pattern of easing inflationary pressure within food categories, providing a slight relief to shoppers.
The BRC has called for a strategic approach in the government’s upcoming Budget. They are advocating for a ‘Retail Rates Corrector’, a proposal for a 20% cut in business rates taxes on retail properties. Such a move could empower retailers to offer competitive prices to consumers and stimulate further economic activities like opening new stores and job creation, states Dickinson.
Despite these positive trends in food price inflation, Dickinson warns that ongoing geopolitical issues and regulatory costs might influence future inflation rates. She stressed that while households might enjoy the current slowdown, these factors continue to pose significant risks to the food supply chain and overall market stability.
Moreover, Mike Watkins from NielsenIQ noted that although there’s a reduction in food supply chain inflation, other pressures remain. He emphasized consumer hesitancy in spending as the festive season approaches, suggesting that there will be increased competition among retailers to attract discretionary spending.
The easing of food inflation provides temporary relief, but challenges remain amid geopolitical and regulatory uncertainties.
