- The figures come from a monthly survey by the British Retail Consortium (BRC).
Sharp price cuts during the January sales brought in-store price inflation to 2.9 percent, the lowest level in more than a year.
That figure is down from 4.3 percent in December after prices of gadgets, furniture and fashion items were slashed to tempt shoppers.
In January, non-food inflation fell from 3.1 percent to 1.3 percent, the lowest level in almost two years.
The figures come from a monthly survey by the British Retail Consortium (BRC), which welcomed them as a “New Year’s joy”.
The BRC said the average food price increase rose from 6.7 percent in December to 6.1 percent in January (stock photo)
Food costs remain high and continue to make life difficult for millions of people, but they are also showing signs of falling.
The BRC reported that the average increase in food prices rose from 6.7 percent in December to 6.1 percent in January.
Fresh produce fell from 5.4 percent to 4.9 percent, while the rate of increase of packaging and cans fell from 8.4 percent to 7.7 percent.
The price data is good news for consumers, the government and the Bank of England, as it will help fuel the narrative that inflation is under control and there will be room for rate cuts. interest rates later this year.
BRC chief executive Helen Dickinson said: “Some are looking forward to the New Year as January store price inflation slipped to its lowest level since May 2022.
“Non-food goods were behind the decline as many retailers offered heavily discounted products during their January sales to encourage consumers to spend amid weak demand.” She said there was good news for those who enjoy a cup of tea with annual drops in the price of tea and milk.
But Ms Dickinson warned that further falls in inflation are not guaranteed: “Progress is likely to be hampered by further cost pressures coming directly from government.
The price data is good news for consumers, the government and the Bank of England, as it will help fuel the narrative that inflation is under control and there will be room for rate cuts. interest rates later this year (file photo)
“These include the implementation of the increase in the national living wage in addition to an above-inflation rise in corporate interest rates in April, a potential new ‘surtax’ on grocers in Scotland and poorly designed recycling proposals.
“Increasing geopolitical tensions will also add uncertainty and costs to supply chains. With the general election coming up later this year, we want to see political parties explain how they will help unlock investment across the country rather than following the current trajectory which does the exact opposite.
Mike Watkinson, Head of Retail and Business Insight at NielsenIQ, said: “Shoppers are seeing savings at checkout from non-food retailers promoting and food retailers continuing to reduce prices when goods costs fall .
“However, consumer demand remains fragile, as most households are still not feeling better after almost two years of inflation. »