Food and shop price inflation slow

Food price inflation slowed for the third consecutive month in July, but stayed in double figures. It stood at 13.4% last month, its lowest level this year, according to the British Retail Consortium (BRC). It was 14.6% in June.

Shop price inflation also slowed, to 7.6%, its lowest level this year.

Helen Dickinson, OBE, BRC chief executive, explained: “For the first time in two years, prices fell compared to the previous month. Leading the cuts was clothing and footwear. Food price inflation also slowed, with falling prices across key staples such as oils, fats, fish, and breakfast cereals.

“These figures give cause for optimism, but further supply chain issues may add to input costs for retailers in the months ahead. Russia’s withdrawal from the Black Sea Grain Initiative and subsequent targeting of Ukrainian grain facilities, as well as rice export restrictions from India are dark clouds on the horizon. We expect some global commodity prices to rise again as a result, and food prices will be slower to fall.”

Sue Davies, head of food policy at the Which? consumer association, cautioned: “While it’s good to see inflation slowing, food prices are still rising quickly for millions of people struggling to keep food on the table, making it all the more important for supermarkets to do all they can to help people grappling with the cost of living.”