Falling Food Inflation Continues, Retailers Prepare for Christmas
- British Retail Consortium warns of potential threat to falling inflation in 2024
- Shop Price annual inflation decreased to 4.3% in November from 5.2% in October
- Non-Food inflation fell to 2.5% in November, below three-month average rate of 3.5%
- Food inflation at 7.8% in November, lowest since July 2022
- Retailers competing for lower prices ahead of Christmas
- Increasing business rates and new regulations may impact inflation progress
The British Retail Consortium (BRC) has warned that the trend of falling inflation could face challenges in 2024 due to rising business rates and new regulations. Shop Price annual inflation decreased to 4.3% in November from 5.2% in October, below the three-month average rate of 5.3%. Non-Food inflation fell to 2.5%, below the three-month average rate of 3.5%. Food inflation dropped to 7.8% in November, its lowest since July 2022 and the seventh consecutive deceleration in the food category. Retailers are competing to lower prices for customers before Christmas, thanks to lower domestic energy prices reducing input costs, particularly for dairy products. However, Helen Dickinson, BRC’s chief executive, warns that new headwinds like increased business rates and compliance with new regulations may stall or reverse the progress made in bringing down inflation, especially in food. Meanwhile, Mike Watkins of NielsenIQ notes that non-food retailers relied on Black Friday sales to avoid discounting in December while food retailers expect increased footfall due to slowing inflation and festive shopping.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the current inflation rates and includes expert opinions from relevant sources. It presents data in a clear and concise manner without any significant issues related to digressions, misleading information, or personal perspectives masquerading as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about inflation trends in the UK retail sector and includes insights from industry experts. It stays on topic and supports its claims with data and evidence. However, it could benefit from more analysis or discussion of potential long-term consequences or solutions to address the challenges mentioned.
Financial Relevance: Yes
Financial Markets Impacted: Retail and food industries
Financial Rating Justification: The article discusses inflation rates in the retail industry, specifically focusing on shop price inflation and food inflation, which can impact companies within these sectors. It also mentions potential headwinds such as rising business rates and new regulations that could affect businesses’ financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
www.retailsector.co.uk