The latest consumer price inflation data from the ONS indicates a stabilisation of inflation rates.
- The Consumer Prices Index, including housing costs, rose by 2.8% over the past year.
- Clothing and footwear prices have made significant downward contributions to inflation.
- Women’s sports shorts and leggings have seen notable price drops, aiding this trend.
- Kris Hamer comments on the benefits of falling inflation rates for households.
The Office for National Statistics reports that the latest data reveals a steadying of inflation rates, despite pressures from various economic factors. The Consumer Prices Index, inclusive of owner occupiers’ housing costs (CPIH), exhibited an increase of 2.8% over the twelve months leading to June 2024. Similarly, the standard Consumer Prices Index (CPI) saw a rise of 2% during the same period, remaining consistent with the previous month’s figures.
Significant downward contributions to inflation were observed within the clothing and footwear sectors. Prices in these areas declined by 1.2% on a month-to-month comparison, from May 2024. However, over the twelve-month span to June 2024, a moderate increase of 1.6% was noted, following a 3% rise previously recorded in the year to May 2024. A major factor in this price downturn has been attributed to women’s sportswear, specifically shorts and leggings, alongside girls’ fashion tops which experienced robust growth in June 2023.
Kris Hamer, Director of Insight at the British Retail Consortium, highlighted the benefits of reduced inflation rates, stating that households stand to benefit from the dip in retail inflation, particularly in food, clothing, and footwear. Hamer further noted the influence of decreasing energy prices, a fortifying pound, and heightened competition among retailers, which collectively contribute to the reduced pricing of essentials, such as pasta and margarine.
Earlier assessments by the British Retail Consortium attributed reduced shop price inflation to strategic retailer investments in operations and supply chains, thereby cutting June’s shop price inflation to its lowest since October 2021. This development underscores the role of market dynamics and retailer strategies in shaping consumer prices.
The steady inflation rates, alongside strategic retailer actions, highlight the complexity of the current economic landscape.
