Food worth inflation slows to lowest degree this yr
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ood worth inflation has slowed to its lowest degree this yr amid falling costs for staples resembling oils, fish, and breakfast cereals, figures present.
Food inflation decelerated to 13.4% in July, down from 14.6% in June – the third consecutive slowing and its lowest degree since December final yr, in response to the British Retail Consortium (BRC)-Nielsen Shop Price Index.
Overall, store costs had been 7.6% larger in July than a yr in the past, slowing from 8.4% in June, and in addition the bottom degree this yr.
Prices fell in contrast with June for the primary time in two years.
These figures give trigger for optimism, however additional provide chain points might add to enter prices for retailers within the months forward
BRC chief govt Helen Dickinson mentioned: “Leading the cuts was clothing and footwear, where retailers mitigated wet weather with larger discounts.
“Food price inflation also slowed to its lowest level this year, 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.”
Shoppers proceed to vary how they store as a part of their coping methods
Mike Watkins, head of retailer and enterprise perception at NielsenIQ, mentioned: “The summer holiday period should help discretionary spend a little and, whilst inflation remains high, the outlook is improving.
“Shoppers continue to change how they shop as part of their coping strategies. This includes shopping at different retailers, buying lower priced items, delaying spend or only buying when there are promotions.
“This behaviour looks set to continue.”