The British Independent Retailers Association has reviewed recent figures from the BRC-Nielsen Shop Price Index and has said the Bank of England needs to 'carefully consider' any future interest rate increase which will ensure the stability of economic recovery.

The report for July 2023, shows:

• Shop Price annual inflation decelerated to 7.6% in July, down from 8.4% in June. This is below the 3-month average rate of 8.4%. Shop price growth is at its lowest this year.
• Non-Food inflation decelerated to 4.7% in July, down from 5.4% in June. This is below the 3-month average rate of 5.3%. Inflation is its lowest since December 2022.
• Food inflation decelerated to 13.4% in July, down from 14.6% in June. This is below the 3-month average rate of 14.5% and is the third consecutive deceleration in the food category. Inflation is its lowest since December 2022.
• Fresh Food inflation slowed further in July, to 14.3%, down from 15.7% in June. This is below the 3-month average rate of 15.7% and inflation in this category remains elevated. Inflation is its lowest since November 2022.
• Ambient Food inflation decelerated to 12.3% in July, down from 13.% in June. This is below the 3-month average rate of 12.8% and is the lowest since February 2023.

Andrew Goodacre, BIRA CEO said: "We are pleased to see the inflation levels falling, as it is a positive sign for both businesses and consumers. The deceleration in inflation gives us hope that it will lead to greater consumer confidence, which is essential for boosting spending in the retail sector. As inflation eases, we anticipate an opportunity for more discretionary expenditure on non-food items, benefiting various industries. However, with inflation on the decline, we urge the Bank of England to carefully consider any future interest rate increases to ensure a stable and sustainable economic recovery."