Marginal dip in food price inflation

Food inflation in the UK “eased” slightly in May from 15.7% to 15.4% – the second highest inflation rate on record after a year of increases – the British Retail Consortium (BRC) has reported. Meanwhile, overall shop price annual inflation rose from 8.8% to 9%, a new high.

Fresh food inflation slowed in May, to 17.2%, down from 17.8% in April the trade body announced – also the second highest inflation rate in this category on record. Ambient food inflation rose to 13.1%, up from 12.9% in April, the fastest rate of increase in the ambient food category on record.

BRC chief executive Helen Dickinson, OBE said that the slowdown in food price inflation was largely driven by lower energy and commodity costs starting to filter through to lower the price of some staples, including butter, milk, fruit and fish, but that the price of chocolate and coffee have risen, as has shop price inflation.

“While there is reason to believe that food inflation might be peaking, it is vital that government does not hamper this early progress,” she concluded.