The British Retail Consortium (BRC) has warned that the government risks adding £400m additional pressures on prices without business rates freeze, despite welcoming easing inflation.
The latest CPI inflation figures show headline inflation plunged to 6.8% and food inflation dropped to 14.8%, driven by falling household bills and clothing prices.
Food inflation eased to its lowest level in almost a year, with price drops in tea, coffee, milk, breakfast cereals and fruit.
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Meanwhile, clothing retailers mitigated the wet weather with larger discounts across their ranges.
But British Retail Consortium chief executive Helen Dickinson cautioned that there are still “potential stumbling blocks ahead”.
“Russia’s withdrawal from the Black Sea Grain Initiative and subsequent targeting of Ukrainian grain facilities, as well as rice export restrictions could put pressure on some global commodity prices, slowing the fall in food prices,” said Dickinson.
“Retailers continue invest heavily in keeping falling prices on track. Government can support these efforts by freezing business rates from next April, or else risk adding a £400m additional pressure on prices.”
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