Responding to today’s ONS figures, which show April’s headline inflation figure falling to 2.3% and food inflation down 1.1 percentage points to 2.9%, Kris Hamer, Director of Insight of the British Retail Consortium, said: “Inflation continued to head back towards the Bank of England’s 2% target, with a significant drop in April. The lowest energy price cap in two years and food inflation falling to its lowest level since November 2021, helped to reduce pressure on household finances and brighten their outlook for the economy. There were also notable falls in the inflation rate of clothing and footwear and alcoholic beverages. And there was good news for fruit lovers as the price of fresh, dried and preserved fruit products all fell on the month.
“Retailers are playing a key part in bringing inflation down, but it is vital that government policy supports this too. Retail plays a key role in every part of the country, from the smallest village to the largest city, employing millions of people, and serving millions more. As the cost burden of new policies rises – from business rates to packaging taxes – this affects not just the businesses, but the customers too. With an election looming, it is vital that parties outline their support for customers and retailers through the upcoming manifestos.”
Karen Betts, CEO of the Food and Drink Federation (FDF), added: “The continued fall in food and non-alcoholic drink inflation is good news for households and for food and drink businesses. There remain risks, including geopolitical events impacting shipping and oil prices, and changing weather patterns impacting harvests globally. But manufacturers and the food system more broadly are continuing to shield shoppers successfully from this volatility.
“We continue to actively engage government to ensure they play their part in ensuring food and drink price inflation continues to fall. Plans for ‘Not for EU’ food labelling in Great Britain will push up prices, inhibit growth and cause a drag on investment in our sector. New border checks are pushing up costs particularly for smaller manufacturers and food businesses, and chaotic government guidance is heaping pressure on business owners. The government has a duty to shoppers to fix these issues in a constructive way, and to ensure they are not responsible for self-inflicted economic damage in communities.”
