The British Retail Consortium (BRC) has revealed that food inflation rates are at their “lowest levels” since 2021.
BRC found that food inflation had decelerated to 2.5% in June, down from 3.2% in May. This was below the three-month average rate of 3% and is the 14th consecutive deceleration in the food category. This was the lowest inflation since December 2021.
Fresh food inflation slowed further in June to 1.5%, down from 2% in May. This was below the three-month average rate of 1.9% and was the lowest fresh food inflation since November 2021.
Down from 4.8% in May was ambient food inflation, which decelerated to 3.9% in June. BRC said this was the lowest ambient food inflation since April 2022, and it fell below the three-month average rate of 4.5%.
Shop price annual inflation eased to 0.2% in June, down from 0.6% in May. This was below the three-month average rate of 0.5%. Shop price annual growth is its lowest since October 2021.
Helen Dickinson, chief executive of the BRC, said: “During the height of the cost-of-living, 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. Food inflation is now lower than any time since 2021 helped by falling prices for key products such as butter and coffee.
“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. The last few years should serve as a warning that where business costs rise significantly, consumer prices are forced up too.”
Dickinson continued: “The next Government must address some of the major cost burdens weighing down the retail industry, including the broken business rates system, and inflexible apprenticeship levy. By doing so, retailers can invest in lower prices for the future – helping to reduce the cost-of-living pressures that many families face.”
