Prices in British stores have risen to a new low in more than a year, and the cost of living crisis has abated somewhat.
The Zhitong Finance app learned that the price increase in British stores hit a new low in over a year, and the cost of living crisis has abated somewhat.
Store prices rose 5.2% year on year in October, down from 6.2% in September, according to data released by the British Retailers Association on Tuesday. This is the fifth month in a row that store price increases have declined, and it is also the lowest level since August 2022.
This data is good news for Britain's Conservative government, which has promised to reduce inflation to less than half this year. However, the consumer price index did not slow as expected last month and remained at the highest level among the G7.
Furthermore, the Bank of England will decide on Thursday whether to raise interest rates from 5.25% to a higher level, as the UK economy is suffering from both weak growth and ongoing price pressure.
According to data from the British Retailers Association, the increase in food prices has been slowing for the sixth month in a row. It was 8.8% in October, the lowest level since July last year. Prices for domestic food and children's clothing have all declined compared to last month.
As the holiday shopping season begins, retailers are struggling to attract customers. Marks & Spencer, Tesco (TSCDY.US), and John Lewis are all hiring temporary employees to boost Christmas sales.
Helen Dickinson, CEO of the British Retailers Association, said: “In the face of rising shipping costs, high interest rates, and other input costs, retailers are always trying to keep prices down for customers.”
According to PwC research, nearly one-third of UK consumers plan to cut Christmas spending this year because high inflation places a heavy burden on shoppers.
Mike Watkins, Head of Retail and Business Insights at NielsenIQ, said: “Consumers are always spending more for less. We now need a boost in consumer confidence to support retail sales over the next eight weeks.”