Food inflation now lower than at any time since 2021

Food inflation now lower than at any time since 2021

Food prices are 2.5% higher than they were a year ago in June, with the year-on-year increase falling from 3.2% in May.

It is also well below the three-month average rate of 3% and represents the 14th straight month that food inflation has fallen, according to the British Retail Consortium (BRC).

Food inflation is now lower than at any point since December 2021, helped by falling prices for key products such as butter and coffee.

Fresh food inflation slowed further to 1.5%, down from 2% in May.

Overall shop price inflation eased to 0.2% in June, down from 0.6% in May, and its lowest point since October 2021.

Non-food prices went deeper into deflation, at 1% cheaper – from 0.8% in May – as retailers tried to drive sales by discounting.

BRC chief executive Helen Dickinson said: “During the height of the cost of living crisis, retailers invested heavily in improving their operations and supply chains to compensate for the impact of global shocks on input costs.

“This is clearly paying off, with shop prices having risen just 0.2% over the past 12 months.

“Whoever wins Thursday’s election will benefit from the work of retailers to cut their costs and prices, easing the cost of living for millions of households.”

Mike Watkins, head of retailer and business insight at NielsenIQ, said: “Shop price inflation is still slowing and this will be of help to shoppers as they plan their household budgets for essential goods and services.

“And with uncertainty around discretionary spending, we expect the intense competition across the marketplace to keep price increases as low as possible this summer.”

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