The ongoing price war between Britain’s big-name supermarkets has been cited as a key factor behind last month’s modest dip in consumer price inflation.
Data published by the Office for National Statistics (ONS) revealed yesterday that inflation declined from five per cent in October to 4.8 per cent in October, although it remains well above the Bank of England’s stated target of two per cent.
The ONS singled out competition between supermarket chains and falling petrol prices as helping to ease some of the pressure on cash-strapped shoppers. The cost of non-alcoholic drinks and food, meanwhile, climbed at its lowest rate since July last year.
“November's UK inflation figures provide further hope that inflation has now passed its peak,” said Vicky Redwood, chief UK economist at Capital Economics. “There is still a lingering risk that inflation picks up again in December, but come January - when the VAT rise drops out - it should start to fall like a stone.”
Last week, the British Retail Consortium hailed the impact of the supermarkets’ recent price cuts, but noted that retailers had simultaneously had to cover the cost of higher energy prices.
