Price of residing: Food inflation slows in May – however nonetheless rises 15.4% year-on-year
Food inflation within the UK has slowed from April’s record-breaking rise – however remains to be up greater than 15% on the 12 months, new retail figures present.
Research by the British Retail Consortium (BRC) and Nielsen exhibits a 15.4% rise in meals inflation within the 12 months to May.
It is the second-fastest annual improve that the BRC – the commerce organisation for UK retailers – has ever measured.
However, it’s down barely in comparison with April’s record-breaking improve of 15.7%.
The group’s chief government, Helen Dickinson, mentioned there was cause to consider meals inflation “might be peaking”.
However, the slowing of meals inflation didn’t lead to a slow-down of total inflation in outlets.
That rose from 8.8% to a report 9% between April and May, the BRC mentioned.
“While overall shop price inflation rose slightly in May, households will welcome food inflation beginning to fall,” Ms Dickinson mentioned.
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She mentioned the slowing was seemingly a results of decrease vitality and commodity prices starting to filter by way of to decrease costs on some staples, akin to butter, milk, fruit, and fish.
However, she warned the federal government towards plans to introduce new value caps on important gadgets.
The warning comes after it was reported that Downing Street was drawing up plans to encourage supermarkets to introduce voluntary price caps on meals staples in a bid to assist with the price of residing disaster.
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“While there is reason to believe that food inflation might be peaking, it is vital that Government does not hamper this early progress by piling more costs onto retailers and forcing up the cost of goods even further,” Ms Dickinson mentioned.
Mike Watkins, head of retailer and enterprise perception at NielsenIQ, mentioned: “To assist mitigate the impression of inflation, buyers are saving cash by in search of seasonal promotions on the excessive avenue and making the most of the worth reductions supplied by grocery store loyalty schemes.
“Food retailing in particular is competitive, so hopefully the recent price cuts in fresh foods is a sign that inflation has now peaked, albeit ambient inflation may take a little while longer to slow.”
It comes after Chancellor Jeremy Hunt backed rate of interest hikes, even when they threat of plunging the UK into recession, in an effort to fight hovering inflation.
Experts have additionally beforehand warned that alarmingly costly meals is ready to overhaul vitality payments because the “epicentre” of the price of residing disaster.