Responding to the latest CPI inflation figures which shows headline inflation falling to 6.7% and food inflation falling to 13.6%, Helen Dickinson, Chief Executive of the British Retail Consortium, said:
“Food inflation eased for the fifth month in a row, underpinning the hard work by retailers to bring costs down. Fierce competition between supermarkets has helped to bring down prices for many essentials including bread, butter, milk and fish. There was also good news for households as inflation levels for furniture and home appliances fell, though many homeowners will be looking nervously towards tomorrow’s interest rates decision by the Bank of England.
“With headline inflation still above 6% and at risk of being pushed back up from rising oil prices, retailers are in line for an increase of more than £400m-a-year in their business rates bill, determined by September’s CPI. This announcement would put further pressure on consumer prices, just as inflation is beginning to come under control. Last week, 44 retail leaders called on the Chancellor to freeze the business rates multiplier, which would otherwise hold back investment, including in new shops and jobs.”
Notes:
- ONS Consumer Price Index figures
|
Year on Year changes |
Jul-23 |
Aug-23 |
|
CPI (overall index) |
6.8% |
6.7% |
|
01 Food and non-alcoholic beverages |
14.8% |
13.6% |
|
02 Alcoholic beverages and tobacco |
9.4% |
10.5% |
|
03 Clothing and footwear |
6.6% |
7.0% |
|
04 Housing, water, electricity, gas and other fuels |
6.8% |
7.0% |
|
05 Furniture, household equipment and maintenance |
6.2% |
5.1% |
|
06 Health |
8.9% |
8.5% |
|
07 Transport |
-2.0% |
-0.5% |
|
08 Communication |
7.1% |
8.2% |
|
09 Recreation and culture |
6.5% |
5.8% |
|
10 Education |
3.2% |
3.2% |
|
11 Restaurants and hotels |
9.6% |
8.3% |
|
12 Miscellaneous goods and services |
6.0% |
5.6% |