Consumers Face Unprecedented Inflation

Inflation Hits Its All‑Time High in 2023

Consumers are feeling the squeeze. 2023 saw the worst inflation ever in over four decades, peaking at 19.6% in March. The upward climb has slowed, but it’s still hovering around 9% above the previous year, rattling the wallets of millions.

Energy & Food Prices: A Double Whammy

The war in Ukraine exposed cracks in the UK’s wholesale market, causing a full year of sky‑high energy costs. Meanwhile, food prices continue to insult our grocery budgets.

Butter & spreads have tripled since last year, yet everyday staples are still out of reach for many.
Budget range items remain the cheapest on shelves, but convenience stores often charge a premium.
Smaller supermarket branches could bridge this affordability gap, but many shoppers need them.

Expert Insight

Food Policy Head Sue Davies says: “We’ve seen the worst inflation in a generation in 2023. While prices are easing, the cost of living is still knocking on doors.” She points out that butter and spreads have risen sharply, but essential goods may never return to pre‑crisis prices.

Balwinder Dhoot, director of sustainability at the Food and Drink Federation, notes: “Agricultural commodity prices are falling, yet 21% higher than pre‑pandemic levels. Cocoa prices hit a 25‑year high, olive oil is almost double, and shipping disruptions in the Red Sea are adding another 10% to inflation.”

What This Means for You

Keep an eye on your budget. The price spiral isn’t just a headline; it’s a daily challenge. Whether you’re making ends meet or just wanting a decent coffee, the numbers show that smart shopping and staying informed is more crucial than ever.

On the Horizon: 2024 Looks Rough for UK Retailers

Andrew Goodacre – the big boss at the British Independent Retailers Association (Bira) – has spoken out on the year ahead.
His take? “We’re looking at another pretty bumpy ride in 2024—especially with all this gloom about growth.”

📈 Inflation is expected to hold steady, not spike or bleed out.
💸 Interest rates are projected to stay where they are—no sudden hikes.
📋 Stability matters – it’s all about clamping down on economics so retail can focus on bouncing back.

So, if you’re thinking of a shiny, bright 2024 for your store, you might want to keep an eye out for the bumps ahead. Goodacre’s pointed out that a solid economic ground is the launchpad for recovery.