The British Retail Consortium (BRC) has revealed that the trajectory of food prices continues to surpass wage growth, despite a decline in the general rate of retail inflation.
According to the BRC’s findings, the overall food inflation rate recorded a rise of 11.5% in August, marking a reduction from July’s 13.4%.
In contrast, the latest data from the Office for National Statistics (ONS) indicates that the annual growth in average total pay experienced a more moderate increase of 8.2% during the period from April to June.
While fresh food inflation exhibited a decline to 11.6% in August, down from the previous month’s 14.3%, inflation for ambient foods, those stored at room temperature, also experienced a decrease from 12.3% in July to 11.3% in August.
Concurrently, the BRC conveyed that the pace of price hikes within retail outlets has tapered down to its lowest level since October of the preceding year, although costs continue to exhibit a notable upward trend.
The year leading up to August witnessed a 6.9% increase in prices, a drop from the 8.4% elevation noted in July.
While the realm of retail inflation has witnessed a decrease, this shift should not be misconstrued as a sign of decreasing prices. Instead, it reflects a moderation in the pace of price escalation between the periods spanning from September 2022 to August 2023, relative to the interval encompassing August 2022 to July 2023.
The BRC elucidated that the primary factor contributing to the decline in retail inflation can be attributed to a comparatively slower increase in fresh food prices.
These observations collectively underscore the ongoing challenge of aligning food costs with wage growth and shed light on the complex interplay between inflation dynamics and consumer purchasing power.
