Daily Newsletter

31 August 2023

Daily Newsletter

31 August 2023

UK food inflation declines to 11.5% in August 2023

Shop price annual inflation drops to 6.9% during the month from 7.6% in July.

Jangoulun Singsit August 30 2023

Food inflation in the UK has slowed to 11.5% in August from 13.4% in July, according to data from the British Retail Consortium (BRC).

The figure is below the three-month average rate of 13.1% and is at its lowest since September 2022.

Inflation of fresh food slowed further to 11.6% in August from 14.3% in July. This is below the three-month average rate of 13.8%.

Non-food inflation remained unchanged at 4.7% during the month but is below the three-month average rate of 5.0%.

The BRC data also reveal that ambient food inflation slowed to 11.3% in August, down further from 12.3% in the previous month. It is behind the three-month average rate of 12.2%.

During the month, shop price annual inflation also dropped to 6.9%, down from 7.6% in July. Shop price growth is the lowest since October 2022.

British Retail Consortium chief executive Helen Dickinson said: “Better news for consumers as shop price inflation in August eased to its lowest level since October 2022. This was driven by falling food inflation, particularly for products such as meat, potatoes and some cooking oils.

“These figures would have been lower still had the Government not increased alcohol duties earlier this month. Across Non-Food categories, toiletries and cosmetics saw price growth ease as many key components became cheaper. Meanwhile, inflation for clothing and footwear increased as retailers unwound their extensive summer sales.

“While inflation is on course to continue to fall thanks to retailers’ efforts, there are supply chain risks for retailers to navigate. Russia’s withdrawal from the Black Sea Grain Initiative and its targeting of Ukrainian grain facilities, as well as poor harvests across Europe and beyond, could serve as potential roadblocks to lower inflation.”

APAC duty-free market expected to grow fastest, fueled by rising income levels and international travelers

Per latest GlobalData estimates, the global duty-free market retailing market was valued at $49 billion in 2022, its highest level ever as it bounced back from the pandemic impact, and is expected to grow at a CAGR of more than 28% during the period 2020-2026, driven by government initiatives, rising passenger numbers, major global events (for instance global sporting tournaments) and the renewed popularity of cruise trips. Infrastructure investments will also play an important role, particularly airport expansion and space refurbishment, and investments in arrivals duty-free formats.

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