Falling Inflation For Food And Clothing

19th July 2024

Responding to the latest CPI inflation figures, which show headline inflation remaining at 2.0% and food inflation falling 0.2 percentage points to 1.5%, Kris Hamer, Director of Insight of the British Retail Consortium, said:

"While headline inflation remained at 2.0%, households will benefit from falling inflation rates in retail, with Food and Clothing & Footwear both dropping compared to last month. Falling energy prices and a stronger pound combined with fierce competition between retailers are helping to bring down prices for many goods, including essential items like pasta and margarine. A drop in prices could also be seen across Clothing and Footwear, with prices falling 1.2% on the previous month, and even more for children's clothes.

"While we should celebrate the end of high inflation, which has dogged the UK for two years, many of the factors that caused it lurk in the background. Energy prices have fallen from peak, but the UK's reliance on imported energy remains a vulnerability. Similarly, the impact of climate change on harvests at home and abroad, as well as rising geopolitical tensions, could increase commodity prices and translate into higher inflation in the future."

Note
While inflation may have dropped it means only that prices are going up less fast.