Responding to the latest CPI inflation figures which show headline inflation remaining at 4.0% and food inflation falling 1.1 percentage points to 6.9%, Kris Hamer, Director of Insight of the British Retail Consortium, said:

The new year began with an unchanged headline inflation rate, with a rise in miscellaneous goods and services counteracted by falls in categories such as furniture and household equipment. Discounts offered by retailers in the January sales helped shoppers, particularly in clothing and footwear. There was some good news for households, as food inflation fell for the tenth consecutive month, with condiments and dried vegetables seeing large month-on-month falls in price.

With the headline inflation rate failing to fall for the second consecutive month there is no space for complacency. Government should recognise the cumulative impact of their policies – from rises in business rates to its new packaging levy – at a time when minimum wages are seeing the biggest rise on record and border checks are being implemented. Ultimately, if these costs continue rising unabated, it is inevitable that they will filter back into the price paid by households.