Lower Food Costs UK Inflation Hits Lowest Point This Year
According to a report by BBC, food price inflation in the United Kingdom has reached its lowest level this year, primarily due to decreases in the prices of oils, fish, and breakfast cereals.
Inflation in July slowed to 13.4% compared to 14.6% in June, as reported by the British Retail Consortium (BRC) and NielsenIQ retail analysts.
Despite the slowdown in inflation, shop prices remain 7.6% higher this month compared to the figures from the previous year.
BRC chief Helen Dickinson expressed cautious optimism about the figures but highlighted that further supply chain issues may contribute to increased input costs for retailers in the coming months. She pointed out that Russia’s withdrawal from the Black Sea Grain initiative and their targeting of Ukrainian grain facilities, along with rice export restrictions from India, could lead to rising global commodity prices, resulting in slower food price reductions.
This marks the third consecutive month of inflation decline and the lowest level of food inflation since December last year, according to the BRC trade body.
Mike Watkins, Head of Retailer and Business Insight at NielsenIQ, acknowledged an improvement in the outlook. He stated that shoppers are adapting their shopping behaviors as part of their coping strategies. These strategies include shopping at different retailers, purchasing lower-priced items, delaying spending, or only buying when there are promotions.
In the last year, inflation was soaring due to an increase in food and energy bills. The recent slowdown in food price inflation indicates a potential easing of price pressures in the UK.
