Annual shop price inflation accelerated to +8.0% in January, up from +7.3% in December, according to the latest BRC-Nielsen IQ data. This was above the 3-month average rate of +7.5%, and leaves shop prices at record highs.
Non-food inflation accelerated to +5.1%, up from +4.4% in December, in line with the 3-month average rate of +4.7%.
Helen Dickinson OBE, chief executive of the British Retail Consortium (BRC), says: “Retail prices rose in January as discounting slowed and retailers continued to face high input costs. Ambient food inflation accelerated the most as wholesale and bulk prices grew, particularly for sugar and alcohol. Fresh food prices also remained high due to increased food production costs as well as elevated wholesale fruit and vegetable prices. Meanwhile, clothing and footwear prices eased, so customers were able to replenish their wardrobes with some bargains during the January sales.”
“With global food costs coming down from their 2022 high and the cost of oil falling, we expect to see some inflationary pressures easing. However, as retailers still face ongoing headwinds from rising energy bills and labour shortages, prices are yet to peak and will likely remain high in the near term as a result.”