Falling inflation at risk from 2024 cost pressures

Overall shop price inflation remained steady in December, says the latest British Retail Consortium data.

According to the latest BRC-NielsenIQ Shop Price Index for December 2023, Shop Price annual inflation was unchanged at 4.3% in December. This is below the 3-month average rate of 4.6%. Shop price growth remains at its lowest since June 2022.

Non-Food inflation rose to 3.1% in December, up from 2.5% in November. This is above the 3-month average rate of 3.0%. Inflation is its lowest since September 2022.

Food inflation decelerated to 6.7% in December, down from 7.7% in November. This is below the 3-month average rate of 7.7% and is the eighth consecutive deceleration in the food category. Inflation is its lowest since June 2022.

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “Households did have reason to celebrate as food inflation fell for the eighth consecutive month thanks to retailers’ efforts to bring down prices in the run-up to Christmas. There was cause for merriment as prices of wine, port and sherry fell on the month. Non-food products had a more challenging December, with price inflation rising again following retailers’ investment in November Black Friday discounting and ahead of the January sales.”

“Retailers will continue to do all they can to keep prices down in 2024, but there are obstacles on the road ahead. New border checks for EU imports, hundreds of millions more on business rates bills from April. Government should think twice before imposing new costs on retail businesses that would not only hold back vital investment in local communities, but also push up prices for struggling households.”

Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said: “NIQ research showed that low price, quality, and availability were the top factors for shoppers when planning where to do their main Christmas grocery shop this year so the further fall in shop prices will have helped shoppers celebrate the festive season. But there was a lot of pressure on discretionary spend and price discounting was deeper and began earlier not just in the non-food channel but also in food retail, where promotions got back to a 4 year high at the end of the year.”

Save this article for later

You can revisit this article if you save it as favourite news!

Leave a Comment

MORE ARTICLES

Peter Harding, Managing Director at Fairway Furniture, shares a deeper insight into the ongoing refurbishment at their flagship Plymouth store....