The UK’s consumer price index (CPI) annual inflation rate for food and non-alcoholic beverages has dropped to 6.7% in August 2023.
According to data released by the Office for National Statistics (ONS), the annual rate for food and non-alcoholic beverages also declined to 13.6% from 14.8% in July.
The data also revealed that CPI for alcohol and tobacco increased from 9.4% in July to 10.5% in August.
CPI of the clothing and footwear division increased to 7.0% in August against the prior month’s figure of 6.6%.
ONS data showed that the annual inflation rate for furniture and household goods was 5.1% in August, down from 6.2% in July.
The annual inflation rate for restaurants and hotels was the lowest since May 2022 at 8.3% in August 2023.
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In response to ONS data, British Retail Consortium chief executive Helen Dickinson said: “Food inflation eased for the fifth month in a row, underpinning the hard work by retailers to bring costs down. Fierce competition between supermarkets has helped to bring down prices for many essentials, including bread, butter, milk and fish.
“There was also good news for households as inflation levels for furniture and home appliances fell, though many homeowners will be looking nervously towards tomorrow’s interest rates decision by the Bank of England.
“With headline inflation still above 6% and at risk of being pushed back up from rising oil prices, retailers are in line for an increase of more than £400m-a-year in their business rates bill, determined by September’s CPI.
“This announcement would put further pressure on consumer prices, just as inflation is beginning to come under control. Last week, 44 retail leaders called on the Chancellor to freeze the business rates multiplier, which would otherwise hold back investment, including in new shops and jobs.”