Food inflation still rising

The latest UK inflation data is available from ONS, up to December 2022.

“All items” inflation is now +10.5% year-on-year, by the CPI method, this is down 0.2% when compared with the November figure and 0.6% below the October figure, which is now believed to be the inflation peak.

Using the slightly wider RPI method, “all items” inflation stands at +13.4%, a fall of 0.6% compared with the November figure.

The largest downward inflationary contributors since the October peak have been fuel prices. There have also been downward contributions from clothing and recreation. Rising hospitality and food prices continue to partially offset the easing of other categories.

Consumers will however continue to see rising prices; lower inflation does not mean that prices are falling, but that they are not rising as fast as they were.

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Food and drink CPI inflation moved upwards to +16.8% in December, up from 16.4% in November. This continues to be in-line with our latest food price inflation forecast, found in our latest Viewpoint report: How bad is the Economic Storm?

Rising inflation across food and drink occurring simultaneously with falling all items inflation, could impact trust and the wider reputation of the food and consumer goods industry. Retailers and suppliers will continue to work hard to minimise price changes for shoppers and reassure them that they are getting the best possible value.

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