Competitive grocery market helps keep inflation steady
Responding to the latest CPI inflation figures, which show headline inflation rose to 2.9% and food inflation falling to 1.3%, Harvir Dhillon, lead economist at the British Retail Consortium, said: “Last month, inflation rose for the first time since March, in large part due to the lifting of the energy price cap. But there was some good news for consumers as food inflation slowed, with prices for pasta, olive oil and fresh fruit all falling on the month, demonstrating that strong competition among grocers is firmly keeping a lid on people’s weekly shop, despite successive supply chain shocks. By discounting everyday essentials and delivering value, retailers are actively shielding consumers from the inflationary headwinds sweeping through the economy.
“Keeping inflation under control must be an urgent priority for this government. Retailers have competed fiercely and managed to keep the cost of food and essentials down for shoppers, but the rising cost of government policies puts this in jeopardy. The upcoming Budget is a crucial test. If ministers can reduce the cost of doing business by slashing standing charges on energy bills, cutting the cost of employment and rebalancing the business rates burden away from retail, those savings can be passed directly to customers at the checkout, keeping inflation at bay for households continuing to face rising bills.”