Price rises in shops lowest for almost a year
By David Wood | 29th August 2023
Price rises in British shops have slowed to their lowest rate since last, new data shows.
Prices rose 6.9% in the year to August, down from 8.4% in July, according to the British Retail Consortium (BRC).
Meat, potatoes and some cooking oil prices have risen less sharply, the BBC reported.
But with grain exports from Ukraine in jeopardy, a rapid slowdown in price rises is unlikely. Ukraine makes up almost a third of global grain exports.
Up until last month, a deal between Russia and other countries allowed the safe passage of grain out of Ukraine, but Russia has now pulled out of that deal, known as the Black Sea Grain Initiative.
This, combined with India's decision to place export restrictions on rice, means there are now "dark clouds on the horizon", the BRC said.
The retail trade association also blamed a rise in taxes on alcohol.
Some ingredients in toiletries and cosmetics have become cheaper, helping to ease price rises in these categories.
However, inflation for clothing and footwear increased as the summer sales came to a close.
Soaring food prices have been hitting households hard for more than a year.
The UK's overall inflation rate in July was 6.4% but food inflation rose 11.5% in August, down from 13.4% in July.
Despite the fall, food prices are still rising faster than wages. Annual growth in average total pay only grew by 8.2% from April to June, according to the latest data available from the Office for National Statistics (ONS).
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