Food inflation eases for second consecutive month

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ood inflation has eased for a second month as supermarkets reduce the value of family staples, figures present.

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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.

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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%.

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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.

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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.

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British Retail Consortium chief govt Helen Dickinson mentioned: “Households up and down the country will welcome the easing of shop price inflation in June.

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“If the current situation continues, food inflation should drop to single digits later this year.

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“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.

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“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.”

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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.

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“And if global supply chain costs continue to fall, we may now be past the peak of price increases.

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“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.”

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