Responding to the latest CPI inflation figures, which show headline inflation falling to 3.6% and food inflation rising to 4.9%, Dr Kris Hamer, Director of Insight at the British Retail Consortium, said:
Food inflation edged back closer to 5%, after some respite in September, in what will be unwelcome news for consumers just a week before the Budget. Despite this rise, headline inflation fell for the first time in seven months in October, helped by the introduction of a new energy price cap. Meanwhile, an early start to Black Friday promotions helped to keep clothing and footwear inflation low. There will also be some relief that, while the cost of the weekly shop remains high, some products including olive oil did fall in price on the month.
Having seen the inflationary impact last year’s Budget, it is essential that the Chancellor does not come knocking at the door of retail once again. With prices still high and consumers feeling the pinch, the Budget is a crucial opportunity to alleviate some of the price pressures bearing down on the industry. Fulfilling the manifesto pledge to reduce the business rates burden on the high street will allow retailers to invest more to keep prices in check, benefiting households across the country.
