The rate of inflation has eased to 3.6%, according to official figures.
The news will doubtless be welcomed by Chancellor Rachel Reeves ahead of next week’s budget, and in additon, the Institute of Grocery Disctibution (IGD) has announced it believes food inflation to have reached a peak.
The Office for National Statistics (ONS) stated that any slowdown in the consumer prices index (CPI), down from the annual 3.8% rate recorded in September, was largely down to aspects like household energy bills.
James Walton (left), chief economist at the IGD, said of the latest figures: “Food inflation saw an increase to 4.9%, versus 4.5% last month. Despite this increase, we think it will average at around 4% for 2025.
“Therefore, food inflation is likely past its peak and retailers will use this as an opportunity to hold prices down to drive volume growth during the crucial Christmas trading period.
“However, many shoppers are still finding it tough and will be looking around to find the best possible value for money, with IGD ShopperVista data showing that 66% of people plan to shop for promotions more and 65% plan to use their loyalty cards more as a way of managing household budgets.
“All eyes will now be on what is set to be a challenging Budget for the Chancellor. Food businesses will be assessing the implications in terms of additional costs impacting food inflation and any changes affecting households, which has the potential to impact spend.”
The Autumn Budget takes place next Wednesday (26 November).
No comments yet