After a review of recent figures from the BRC-Nielsen Shop Price Index, British Independent Retailers Association has called on Bank of England to 'carefully consider' any future interest rate increase which will ensure the stability of economic recovery.
Andrew Goodacre, BIRA CEO said that the retailers are pleased to see the inflation levels falling, as it is a positive sign for both businesses and consumers.
"The deceleration in inflation gives us hope that it will lead to greater consumer confidence, which is essential for boosting spending in the retail sector. As inflation eases, we anticipate an opportunity for more discretionary expenditure on non-food items, benefiting various industries.
"However, with inflation on the decline, we urge the Bank of England to carefully consider any future interest rate increases to ensure a stable and sustainable economic recovery," stated Goodacre.
The report for July 2023, shows that shop Price annual inflation decelerated to 7.6 per cent in July, down from 8.4 per cent in June. Food inflation decelerated to 13.4 per cent in July, down from 14.6 per cent in June while fresh food inflation slowed further in July, to 14.3 per cent.
Ambient Food inflation decelerated to 12.3 per cent in July, down from 13 per cent in June. This is below the 3-month average rate of 12.8% and is the lowest since February 2023.
Simon Hannah
