Food inflation eases for second consecutive month
27 June 2023, 08:44
Shop price inflation overall slowed to 8.4% in June, down from 9% in May, according to the BRC-NielsenIQ Shop Price Index.
Food inflation has eased for a second month as supermarkets cut the price of household staples, figures show.
Shop price inflation overall slowed to 8.4% in June, down from 9% in May and below the three-month average of 8.7%, according to the BRC-NielsenIQ Shop Price Index.
Food inflation decelerated for a second consecutive month to 14.6% in June, a relatively significant drop from May’s 15.4% and below the three-month average of 15.2%.
Fresh food inflation saw a significant slowing from May’s 17.2% to 15.7% as retailers dropped the prices of staples including milk, cheese and eggs.
Clothing and electrical goods also saw falling prices amid inflation on items other than food slowing to 5.4% from 5.8% last month, helping customers to pick up a bargain ahead of the summer holidays.
British Retail Consortium chief executive Helen Dickinson said: “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 business insight at NielsenIQ, said: “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.”
