Single-digit food inflation is ‘positive psychological milestone’
Kantar data will make many Britons feel good about where prices are heading.
7th November 2023 09:35
by Myron Jobson from interactive investor
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Myron Jobson, Senior Personal Finance Analyst, interactive investor, says: “Food inflation easing back to a single-digit level is a psychological milestone that will make many Britons feel good about where prices are heading. Britons have been force-fed a diet of higher costs for basic necessities for a prolonged period. The fact that we’re seeing some easing in food inflation is really important for shoppers.
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“Despite the relief in food price growth, costs are still much higher than they were before the pandemic. They remain uncomfortably high for many, especially for those on a low income who spend a greater share of their money on food. More broadly, shop prices are taking a bigger slice of household budgets, rising by 9.7% in the four weeks to 29 October.
“Some households are managing to shoulder the pain of higher prices - in part because the wage growth run. But not every worker will have had a pay rise and the inflation burden continues to weigh heavy on many household finances.
“It remains important to keep tabs on your spending habits, ensuing that you have enough money stashed away in a rainy-day fund. The rule of thumb is to aim to hold three to six months' living expenses in cash.”
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