The British Retail Consortium (BRC) reported overall food inflation rose 11.5% in August, down from 13.4% in July. But while retail inflation has dropped it doesn’t mean that things are getting cheaper, just that prices increased more slowly between September 2022 and August 2023 than they did between August 2022 and July 2023. The main reason retail inflation dropped was because fresh food prices rose less rapidly. While this is moderately encouraging news, it seems likely that the rising demand seen by Exeter Food Action in the first half of the year will continue for the foreseeable future.
Period covered: 01 – 07 August 2023
- Shop price annual inflation decelerated further to 6.9% in August, down from 7.6% in July. This is below the 3-month average rate of 7.7%. Shop price growth is at its lowest since October 2022.
- Non-Food inflation remained unchanged at 4.7% in August. This is below the 3-month average rate of 5.0%.
- Food inflation decelerated to 11.5% in August, down from 13.4% in July. This is below the 3-month average rate of 13.1% and is the fourth consecutive deceleration in the food category. Food inflation is at its lowest since September 2022.
- Fresh Food inflation slowed further in August, to 11.6%, down from 14.3% in July. This is below the 3-month average rate of 13.8% and is at its lowest since August 2022.
- Ambient Food inflation decelerated to 11.3% in August, down from 12.3% in July. This is below the 3-month average rate of 12.2% and is the lowest since January 2023.
A Business Insight survey by consumer intelligence company, NIQ, shows that 60% of households expect to be severely or moderately impacted by rising household costs in the coming months.