The latest ONS data reveals a stable inflation rate despite price changes in specific sectors.
- Women’s sports shorts and leggings have significantly impacted clothing and footwear inflation rates.
- Both CPIH and CPI increased modestly in the year to June 2024, showing stable inflation trends.
- Retail competition and economic factors are contributing to a decrease in essential goods prices.
- BRC highlights strategic investments as key to reduced shop price inflation.
The Office for National Statistics (ONS) recently published consumer price inflation data indicating that the Consumer Prices Index, including owner occupiers’ housing costs (CPIH), increased by 2.8% in the 12 months leading to June 2024. Simultaneously, the Consumer Prices Index (CPI) noted a 2% rise in the same period, reflecting no change from the previous month. Significantly, the clothing and footwear sector emerged as a notable downward contributor to these inflation rates, with prices declining by 1.2% from May 2024 to June 2024.
In an analysis by the ONS, it was highlighted how women’s sports shorts and leggings have played a crucial role in reducing the inflation rate within the clothing and footwear sectors. Interestingly, the price of these items, along with girls’ fashion tops, experienced marked double-digit growth in June 2023, demonstrating the sector’s dynamic nature in responding to market demands and consumer behaviour.
Kris Hamer, Director of Insight at the British Retail Consortium (BRC), stated that although headline inflation remains at 2%, consumers stand to benefit from reducing inflation rates in retail, particularly noticeable in the categories of food, clothing, and footwear. He attributed declining prices to competitive retail pricing strategies, decreasing energy costs, and currency fluctuations that have generally favoured the pound, thus influencing essential items like pasta and margarine.
Moreover, the BRC recognised retailers’ operational and supply chain investments as pivotal in driving down June’s shop price inflation to its lowest point since October 2021. This element of strategic investment underscores a proactive approach by retailers to navigate economic challenges and foster price reductions, ensuring sustained consumer engagement and competitive market positioning.
In summary, while overall inflation rates remain unchanged, specific sectors such as clothing, footwear, and food benefit from economic and market strategies, offering consumers potential relief from previously rising prices.
