Next government must not take falling inflation for granted
Responding to the latest CPI inflation figures, which show headline inflation falling to 2.0% and food inflation falling 1.2 percentage points to 1.7%, Kris Hamer, Director of Insight of the British Retail Consortium, said:
“The country will breathe a sigh of relief as inflation hits the Bank of England’s target of 2% for the first time in almost three years, raising hopes of an interest rate cut for the 9.6 million mortgage holders across the UK. Falling energy prices continue to be the main driver behind the fall in the headline rate however, a lower inflation rate in clothing and furniture also contributed. Food inflation fell the fourteenth month in a row, and those with a sweet tooth will be happy to see that the price of chocolate and confectionary products fell on the month.
“Hitting the 2% target is welcome news, however, it is vital that inflationary progress is not taken for granted by the next government. Retailers are working hard to limit price increases for their customers, and the next administration must play their part in reducing cost pressures on retailers and the customers they serve. Addressing key costs such as the business rates burden, which leads to customers paying a higher price at the till, must be a priority for whoever forms the next government.”
-ENDS-
Notes:
- ONS Consumer Price Index figures
| Year on Year changes | Apr-24 | May-24 |
| CPI (overall index) | 2.3% | 2.0% |
| 01 Food and non-alcoholic beverages | 2.9% | 1.7% |
| 02 Alcoholic beverages and tobacco | 8.1% | 7.8% |
| 03 Clothing and footwear | 3.7% | 3.0% |
| 04 Housing, water, electricity, gas and other fuels | -4.9% | -4.8% |
| 05 Furniture, household equipment and maintenance | -1.0% | -1.9% |
| 06 Health | 6.7% | 6.2% |
| 07 Transport | 0.1% | 0.5% |
| 08 Communication | 4.0% | 4.1% |
| 09 Recreation and culture | 4.4% | 3.9% |
| 10 Education | 4.5% | 4.5% |
| 11 Restaurants and hotels | 6.0% | 5.8% |
| 12 Miscellaneous goods and services | 3.6% | 3.1% |
The BRC sent this release to our “General Retail”, “Monitors” media list(s). To check/update what media lists you are on, please contact us below:
