Period Covered: 01 – 07
February 2024
- Shop Price annual inflation eased to 2.5% in February, down
from 2.9% in January. This is below the 3-month average rate of
3.3%. Shop price annual growth is its lowest since March
2022.
- Non-Food inflation was unchanged at 1.3% in February. This is
below the 3-month average rate of 2.0%. Inflation is its lowest
since January 2022.
- Food inflation decelerated to 5.0% in February, down
from 6.1% in January. This is below the 3-month average rate of
6.0% and is the tenth consecutive deceleration in the food
category. Inflation is its lowest since May 2022.
- Fresh Food inflation slowed further in February, to 3.4%,
down from 4.9% in January. This is below the 3-month average rate
of 4.6%. Inflation is its lowest since February 2022.
- Ambient Food inflation decelerated to 7.2% in February, down
from 7.7% in January. This is below the 3-month average rate of
7.8% and is the lowest since July 2022.
|
|
OVERALL SPI
|
FOOD
|
NON-FOOD
|
|
% Change
|
On last year
|
On last month
|
On last year
|
On last month
|
On last year
|
On last month
|
|
Feb-24
|
2.5
|
0.4
|
5.0
|
-0.1
|
1.3
|
0.7
|
|
Jan-24
|
2.9
|
-0.7
|
6.1
|
0.7
|
1.3
|
-1.4
|
Note: Month-on-month % change refers to changes in the
level of prices.
Helen Dickinson, Chief Executive of the British Retail
Consortium, said:
“There was good news for consumers as shop price inflation fell
to its lowest rate in nearly two years. Food prices fell
month-on-month with drops in fresh food including meat, fish and
fruit. This was driven by easing input costs for energy and
fertiliser while retailers competed fiercely to keep prices down.
In non-food, inflation for furniture, electricals, and health
& beauty products rose, but the price of clothing continued
to fall as many retailers kept promotions in place to entice
consumer spend.
“Easing supply chain pressures have begun to feed through to food
prices, but significant uncertainties remain as geopolitical
tensions rise. Prices of non-food goods will be more susceptible
to shipping costs, which have risen due to the re-routing of
imports around the Cape of Good Hope. Domestically, retailers
face a major rise to their business rates bills in April,
determined by last September’s sky-high inflation rate. April’s
rates rise should be based on April’s inflation, and the
Chancellor should use the Spring Budget to make this correction,
supporting business investment and helping to drive down prices
for consumers.”
Mike Watkins, Head of Retailer and Business Insight,
NielsenIQ, said:
"Shop price inflation has slowed and
the underlying trend in prices will be downwards over the next
few months. Since the start of the year, food retailers in
particular have reduced prices as well as passing on price cuts
coming through supply chains. For high street retailers faced
with weaker demand, keeping prices stable over the next few
months will be key to encourage customers to spend.”
