Food inflation eases for second consecutive month
F
ood inflation has eased for a second month as supermarkets reduce the value of family staples, figures present.
Shop value inflation general slowed to eight.4% in June, down from 9% in May and under the three-month common of 8.7%, based on the BRC-NielsenIQ Shop Price Index.
Food inflation decelerated for a second consecutive month to 14.6% in June, a comparatively vital drop from May’s 15.4% and under the three-month common of 15.2%.
Fresh meals inflation noticed a major slowing from May’s 17.2% to fifteen.7% as retailers dropped the costs of staples together with milk, cheese and eggs.
Clothing and electrical items additionally noticed falling costs amid inflation on gadgets aside from meals slowing to five.4% from 5.8% final month, serving to clients to select up a discount forward of the summer time holidays.
British Retail Consortium chief govt Helen Dickinson mentioned: “Households up and down the country will welcome the easing of shop price inflation in June.
“If the current situation continues, food inflation should drop to single digits later this year.
“However, it is imperative that Government does not hamper this progress by introducing costly new policies. Reforms to the packaging levy and a new deposit return scheme could create an additional £4 billion burden on retailers and their customers.
“Along with a rise in business rates, and the introduction of border controls in October, these policies could hinder the Government’s efforts to combat inflation.”
Mike Watkins, head of retailer and enterprise perception at NielsenIQ, mentioned: “Whilst prices are still higher than a year ago, the slowdown in food inflation is welcome news for shoppers, helped by supermarkets lowering prices of some staple goods.
“And if global supply chain costs continue to fall, we may now be past the peak of price increases.
“However, with most households needing to save money, purchasing behaviour for the rest of this year is still likely to shift towards essential needs with discretionary consumption being de-prioritised or delayed.”